Enroll on time
Most people are automatically enrolled in Original Medicare (Part A and Part B). But some people may need to sign up. The first time that you enroll in Medicare is during your first enrollment period. This is a seven-month period made up of the month you turn age 65, as well as the 3 months before and after.
Some aspects of Medicare punish people for enrolling late. In some cases, you may have to pay extra for the monthly premium if you don’t enroll when you’re first eligible. Here are some late enrollment penalties as they apply to different aspects of Medicare:
- Part A: Your monthly premium can increase by up to 10 percent. You can pay this increased premium for twice the number of years you could have enrolled in Part A but didn’t.
- Part B: Your monthly premium can increase by 10 percent of the standard Part B premium for each 12-month period that you could have enrolled in Part B, but chose not to. You’ll pay this the entire time you have Part B.
- Part D: You may pay additional costs for Part D premiums if you went 63 days or longer after your initial enrollment period without some form of qualifying prescription drug coverage.
Find out if you’re eligible for premium-free Part A
Knowing if you’ll have to pay a monthly premium for Part A can help you choose which type of Medicare to enroll in. Most people don’t enroll for a monthly premium for Part A. This is because they’ve paid Medicare taxes for 40 quarters (10 years) or more. People who haven’t paid Medicare taxes for this amount of time will pay a monthly premium for Part A. In 2021, you may have to pay from $259 to $471 per month if you’re not eligible for premium-free Part A.