Medicare By Force: Sign up or face penalty!
This actually is not the aggressive sales tactic that it seems. Let’s break down what penalties actually are.
Medicare is built to remain financially sustainable so individuals have access to necessary health coverage when they need it.
Part A:
Not everyone qualifies for free Medicare Part A.
If you need to pay Part A premium, you risk a 10% raise in that premium each year you delay. Then when you sign up, you have to pay the increased premium for twice the amount of years that you delayed.
Medicare Part B:
This is a permanent penalty that increases every year by 10% for each year you delay and is added to your premium. This may be more depending on your income (this is known as IRMAA).
How to avoid this?
Ensure you have equal or better coverage through work.
Medicare Part D:
This is calculated at 1% per month (12% each year) for delaying sign up or having gone 63 days without credible coverage.
