If you are turning 65 soon, you will be eligible for Medicare. However, if you are still working, you may already have insurance through your employer or through the Health Insurance Marketplace. In a notice being sent out by the Centers for Medicare and Medicaid Services (CMS),
“In most cases you won’t want to keep your Marketplace plan because once your Medicare coverage starts, you’ll no longer be eligible for any premium tax credits or other cost savings you may be getting for your Marketplace plan,” the notice says. “To avoid an unwanted overlap in Marketplace and Medicare coverage … tell us you want to end your Marketplace plan.”
If you are an individual who is still working – beware – seniors who do not sign up for Part B Medicare within three months before or after their 65th birthday will have to pay a penalty…..and it is permanent! What does Part B insurance cover? It covers your doctor visits and other outpatient services. Just because you have insurance through the marketplace, does not exempt you from having to pay the penalty. The penalty is 10% of the monthly premium for each 12-month period you are late.
It is important to note that people who work past the age of 65 for business with more than 20 employees can delay getting Part B until they leave their jobs. Once your employment ends, you have 8 months to sign up for Part B without a penalty.
Also, if you are late enrolling in Part B, you can only sign up between January through March for coverage that will begin the following July. So, you might be stuck continuing to pay for your marketplace coverage without the subsidies that the federal government provided to make it affordable.
It is so important to educate yourself because neither the federal government nor your insurance provided will do it for you. And you do not want to get penalized for not knowing what you don’t know. So, don’t miss your Medicare sign-up date, even if you are working or have Obamacare insurance!