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Can someone explains why Medicare enactss such an etreme lifelong penalty for filing late?
If you are not paying into the system when you are healthy, the system does not want you to sign up just when you are becoming a taker. That would be the equivalent of only signing up for car insurance when you have a wreck. The penalty helps pay back for those omitted years.
Those of you still working when you turn 65, and retire later . . . before walking out the door that last day, be absolutely certain that you get a letter from HR saying that you have been continuously covered under an employer medical plan since you turned 65. That letter mitigates having to pay the penalty.
The form in question is called "Request for Employment Information", form CMS-L564. It's filled out *after* you get Part A of Medicare, which I believe you're automatically signed up for when you sign up to collect Social Security (at least that's what happened for me). The instructions say:
"In order to apply for Medicare in a Special Enrollment Period, you must have or had group health plan coverage within the last 8 months through you or your spouse's current employment."
You fill out the top part and take it to your employer, who fills out the rest. You then submit it with your "Application for Enrollment in Medicare", form CMS-40B (I'll be doing this in connection with leaving full employment in late spring).
If you don't do this, there's a late enrollment penalty of 10% for each 12 month period you don't have Part B but were eligible to sign up. I have by the way gotten various mailings from SSA since I turned 65, so they do keep in touch.
If you turn 65 and are already receiving Social Security retirement benefits, aren't you automatically enrolled in both Medicare Part A and Part B? Has anyone encountered a problem with this process?
You would be "automatically" enrolled in Part A ( as there is normally no cost), and you can accept or decline Part B ( as there is a Part B premium cost).
That's where some confusion can happen. Some people will decline Part B if they have existing (and eligible) coverage from current employer, or other sources. They need to be careful to understand the choices, and keep documents, so if and when they want /need Part B at some later time, they are not subject to a late enrollment penalty.
You can begin benefits in the month in which you turn 62. I believe I did everything online, and at some point, someone called to verify my info on the phone.
You would be "automatically" enrolled in Part A ( as there is normally no cost), and you can accept or decline Part B ( as there is a Part B premium cost).
That's where some confusion can happen. Some people will decline Part B if they have existing (and eligible) coverage from current employer, or other sources. They need to be careful to understand the choices, and keep documents, so if and when they want /need Part B at some later time, they are not subject to a late enrollment penalty.
Then there is Medicare Advantage (Part C), which replaces Part A and Part B and often includes drug coverage (Part D). Some of the plans offer optional vision, hearing, dental, and other programs. They're offered through private companies. That's what I'll be signing up for when I leave the workplace in a few months. In fact, my general practitioner told me his clinic only accepts Advantage plans, so if I want to stay with them, I'll need to get Advantage. Usually Advantage means paying for Part B plus an additional charge.
Unless you have a lot other money, not sure why you would collect so soon (and no, no one tells you to sign up for either ss or medicare). If I started collecting now (I'm 64, working full time), I would only get approx $1700 a month. If I can stay employed until I'm 70, I get almost $3000! Not sure I'll be able to hang on that long but I need to get to 66 at least so I can keep working part time if I need to and not get penalized. Good luck. Wish I could retire so soon
Unless you have a lot other money, not sure why you would collect so soon (and no, no one tells you to sign up for either ss or medicare). If I started collecting now (I'm 64, working full time), I would only get approx $1700 a month. If I can stay employed until I'm 70, I get almost $3000! Not sure I'll be able to hang on that long but I need to get to 66 at least so I can keep working part time if I need to and not get penalized. Good luck. Wish I could retire so soon
Yes, but you will also be losing $122,000. during that time, and it will take a lot of years to make that up.
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