Can enrolling in COBRA cause a Medicare Penalty? Maybe! On this episode of Medicare Moments with Toni King, Toni answers a question from Robert, a 70-year-old former oil industry worker. Robert and his wife are enrolling in Medicare Part B for the first time and, boy are they surprised to find out they’re getting penalized for not enrolling sooner! The couple had assumed that it wasn’t yet necessary to enroll in Part B since they were receiving COBRA after Robert was laid off. What should they have done differently? And, what can you do to avoid Part B penalties when receiving COBRA? Toni King explains!
Can Enrolling in COBRA Cause a Medicare Penalty?
There is an 8-month window to enroll in Medicare Part B when you lose your full-time job and its benefits. This is a Special Enrollment Period. If you are no longer working full-time with true employer benefits, waiting longer than 8 months to enroll will cause a Medicare Part B penalty. The penalties incurred by waiting to enroll can be extremely costly and they last for a lifetime.
When Should You Enroll in Part B When Leaving Your Full-Time Job?
Your Medicare Part B should begin on the day that you lose your employee benefits (the day COBRA begins). Your Medicare Part B should NOT begin when COBRA ends.
Many Americans enroll in their Part B after their COBRA ends, and they get a big surprise. They find that they’re being penalized because they could have had Part B, but did not. And what’s more, the penalty begins the day they turned 65.
What’s the Penalty for Not Enrolling in Medicare Part B on Time?
The penalty for not enrolling in Medicare Part B on time is 10% for every year that you could have been enrolled. In other words: once you have been penalized, Medicare Part B will cost you your premium, plus an additional 10% for every year after you turn 65. In 70-year-old Robert’s case, his penalty is 50%! That’s his Medicare Part B premium, plus an additional 50% because he waited 5 years after turning 65. This will be Robert’s Medicare Part B cost indefinitely.
Toni Says: Do not wait past the 8-month Special Enrollment Period to enroll in Medicare Part B!
Should I Enroll in Medicare Even if I’m Offered COBRA?
Yes. Don’t wait. Enroll in Medicare!
Medicare Survival Guide Advanced Edition
Order Medicare Survival Guide Advanced
What You Don’t Know Will Hurt You!
Turning 65 in America is a milestone and one of the markers is enrolling in Medicare. But the system is so complicated, and there is a lot of false information out there.
In Toni King’s Medicare Survival Guide Advanced: Basics and Beyond, Toni gives you the critical steps you need to enroll in Medicare properly. Toni shares various situations that she has experienced with her many clients during Medicare consultations, and gives you the information and tools you need to enroll on time to avoid the “famous” Medicare Part B and D penalties.
Medicare Survival Guide Advanced helps you understand Medicare step by step…
Learn How to Enroll the Correct Way
• Still Working Past 65
• Turning 65
• VA Benefits
• Laid-off or Retiring
What Medicare Option Is Best for You
• Medicare Supplement vs. Advantage
• Losing Retirement Benefits
How to Avoid
• The Donut Hole
• Part B Penalties
• Part D IRMAA Penalties
If you are enrolling in Medicare and are confused by the commercials and telemarketers, or from the information that well-meaning friends or family members give, let Toni guide you through the maze of Medicare. Order TODAY!
Medicare Moments Podcast with Toni King
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