When should you enroll in Medicare Part B? Make the wrong enrollment choice, at the wrong time, and you may face a lifetime of premium penalties, or, no coverage at all. As Part B premiums increase, penalties are climbing as well. The problem will escalate very soon with the start of the new Medicare Part D drug plans.
A recent report by the Medicare Rights Center (MRC), a national consumer service organization, found that the higher premium costs are often the result of confusion about when to enroll, compounded by government agencies routinely providing wrong information to persons eligible for Medicare.
Some seniors also delay because they can’t afford the premium. Those seniors may qualify for low-income assistance programs, known as Medicare Savings Programs, that help pay for Medicare premiums and co-insurance. Many seniors are unaware the programs even exist.
Under current law a delay in enrolling in Medicare Part B can cost a lifetime penalty of 10% of the premium for each year that enrollment is delayed, except under very specific and often confusing circumstances. The decision on when to enroll is particularly problematic for persons who have employer-sponsored healthinsurance — including retired federal workers. The penalty will be even higher and accrue more quickly under Medicare Part D drug coverage.
Soon, some 41 million Medicare beneficiaries will need to make the tough decision about whether to enroll in the new prescription drug plans. According to MRC if you already have drug coverage, you will first have to figure out if the Medicare Part D coverage is at least equal to or a better deal than what you already have. You may have to choose among a slew of different plans that each cover a different list of drugs, each with its own co-pays and different pharmacy networks. The plans will have the ability to change their formularies and pharmacy networks at any time, but you will be locked into the plans for the year. Unless Congress makes changes, if you don’t act during the initial six-month enrollment period, you will be penalized for not taking what MRC calls “a leap of faith,” by enrolling in the new Medicare Part D drug plans.
Legislative Note: TREA Senior Citizens League shares the concern that seniors may not get the help they need to make the complex decision to enroll in the new Medicare Part D drug plans and believes Congress should waive the Medicare Part D late enrollment penalty for at least two years. Medicare beneficiaries should not be penalized for taking time to learn whether the coverage will be the best choice for their situation. The Medicare drug coverage was sold to seniors as being voluntary. Seniors should not feel bullied into enrollment by the threat of higher premiums.
