Terminated Medicare Part B Is a GIGANTIC Problem!

Toni,

Five years ago, when I was laid off, I enrolled in Medicare Parts A&B when I turned 65 in August. By November, I found a new job with benefits and terminated my Medicare Part B. In October of 2023, I finally retired. After filing my Social Security forms, I discovered a HUGE problem. I was denied enrollment because I had a past-due bill of $405 from when I was enrolled in Medicare Part B.

Please alert your Medicare column readers about terminating Medicare Part B and what happens when you don’t pay that premium. Enrolling in Medicare will be put on hold. Unfortunately, I don’t remember ever receiving a bill from Medicare. My Medicare Part B is being issued on February 1. And yes—I will be having a “famous” Medicare Part B and D penalty. 

I hope to help Americans understand Medicare issues that can affect them when enrolling in Medicare past 65.

Thanks,
Greg from Spring, TX

Greg,

I’m sure the Medicare stress you’re experiencing is overwhelming! Medicare does allow those turning 65 with employer benefits to delay Medicare Part B enrollment without a penalty when they want to enroll in Medicare later. Delaying Medicare does require having employer group health coverage from you or your spouse’s employment. 

Who You Gonna Call?

Readers, if you find yourself in Greg’s situation, you have two options!

1. Call Social Security.

Ask the agent to view your Social Security account and verify whether you owe any back Medicare Part B or D premiums. Be sure to pay off the past-due premiums. No one wants to experience what Greg did!

2. Visit your local Social Security office in person.

Tell the representative that you need to terminate your Medicare since you are covered by your employer’s group health coverage and made a mistake by enrolling in Medicare. You will need to file Social Security form CMS-1763 “Request to Terminate Medicare Part A (hospital) or Part B (medical)”.

Important Medicare Enrollment Situations

A Working Spouse

If the working spouse is providing health insurance benefits from their current employment group health coverage, then you may want to delay enrolling in Medicare Part B. You may continue to work either part-time or as a self-employed individual while taking advantage of the coverage provided by your working spouse. 

Self-Employed

If you’re turning 65, are not covered under an employer’s group health plan, and waited to enroll in Medicare Part B, then you can receive a 10% penalty for every 12 months that you were not enrolled in Part B when turning 65.

Past 65 and Still Employed

Verify with your (or your spouse’s) employer’s HR department if you should delay enrolling in Part B because you (or your spouse) are “still working” and are on an employer group health plan. As soon as you will are no longer covered by an employer group health plan, have the HR department fill out and sign Social Security form CMS-L564 “Request for Employment Information” and you fill out and sign, CMS-40B “Application for Medicare Part B. Contact your local Social Security office to file both forms to justify your delay in enrollment in Medicare and avoid needless penalties.

Steps to Enrolling in Medicare

Turning 65 and Receiving Your Social Security Check:

• You should receive your “Welcome to Medicare” Kit with your Medicare card 90 days prior to turning 65.
• If you aren’t working full-time with employer benefits or covered by your spouse’s employer benefits when turning 65, please do not return your Medicare card. You do NOT want to pay for Medicare Part B. This can cause you to receive the “famous Part B penalty.”

Turning 65 and NOT Receiving Your Social Security Check:

• You will NOT automatically receive your “Welcome to Medicare” kit when turning 65 with your Medicare card.
• You must enroll in Medicare Parts “A, B, and D” to keep from receiving a “late enrollment penalty (LEP).
• You must enroll in Medicare online at www.ssa.gov/medicare at least 90 days prior to turning 65 for your Medicare Parts A and B to begin the 1^st day of the month you turn 65. Go to Medicare.gov to enroll in your Medicare Part D plan.
• Do NOT wait until right before you turn 65 to enroll in Medicare. It will take time to receive your Medicare card before the 1^st day of the month you turn 65.

Turning 65 and Still Working Full-Time

Do you have Individual Health Insurance?

• Working full-time or contract labor with individual health insurance should enroll in Medicare Parts A, B, and D when turning 65 to avoid a Medicare Part B and D penalty.
• Note: Medicare does NOT recognize individual health plans as “creditable coverage.”

Do you have Qualified Employer Benefits and Work Full-Time?

• Medicare allows you to delay your Medicare Parts A and/or B if you or your spouse are working full-time with employer benefits, not retirement benefits, and you are covered by that specific employer benefits.
• IMPORTANT! “Is still working” are Medicare’s buzzwords for delaying your Medicare Part B. Please take note of that, John and others who may be in his shoes!
• To enroll in Medicare after turning 65 and having delayed Medicare Part B due to working full-time with employer benefits, complete Social Security forms CMS-L564 “Request for Employment Information” (signed by the employer or HR) and CMS-40B “Application for Enrollment in Medicare Part B.” Under “Remarks #12,” state which month you want your Medicare Part B to start. Take your forms to your specific Social Security office either in person, by fax, or by priority mail to enroll in Medicare Part B. Remember to write the words “Special Enrollment Period” across the top of each form to keep from receiving the famous Medicare Part B penalty.

Listen to More Medicare Moments