ELDER CARE INSURANCE SOLUTIONS INC
  • Home
  • About
    • Service Area
  • Document Upload
  • Contact
  • Blog

RI Health insuraNce AGent blog

Medicare Part B and D Beneficiaries Could Be Hit With Late Enrollment Fees in 2022

4/4/2022

 
Medicare Part B and D Late Enrollment Fees
Some Medicare beneficiaries will be hit with late-enrollment fees in 2022. These charges would be warned of by Congress before they occur, per this recent CNBC article. Here is a summary of the article:
  • Late-enrollment penalties for Part B are 10% of the standard premium per 12 months you were supposed to have been enrolled, but weren't.
  • The Senate bill would require that the government inform people about Medicare enrollment starting at 60 years old. This measure restores a provision that was removed from a 2020 bill dealing with other Medicare enrollment issues.
  • The U.S. Congress recently introduced a bill that aims to prevent a costly cost for some new Medicare beneficiaries: late-enrollment penalties. Bipartisan legislation introduced in the Senate would require that the federal government provide information to individuals about Medicare enrollment rules prior to reaching the age of 65. Many beneficiaries will automatically be enrolled because they are receiving Social Security. However, this is not true for all. Lindsey Copeland is the federal policy director of Medicare Rights Center. She stated that "more people are working later in their lives, delaying Social Security, and not getting auto-enrolled." They might have to be active enrollers and understand what happens if they don’t. We have other stories that offer a financial perspective on life's important milestones.
  • There are 63.3 million beneficiaries to the government insurance program, most of them under 65 years old. The majority of people do not pay any premium for Part A (hospital coverage), and they pay a standard monthly fee ($170.10 in 2022 for Part B (outpatient treatment). According to a 2019 report by the Medicare Payment Advisory Commission, the percentage of seniors who have not yet been auto-enrolled in Medicare has increased over time. In 2016, 40% of those eligible for Medicare at 65 years old had to enroll actively, as opposed to 8% in 2002.
  • Late-enrollment penalties are not applicable to Part A. However, they can be applied to those who sign up for Part B too late. This penalty is 10% of the standard Part A premium for every 12 months you are late enrolling. It can also increase annually as the premium adjusts each year. The penalties can be life-threatening. The Part B penalty only affects a small percentage of beneficiaries (an estimated 776,200 beneficiaries in 2020), but the average penalty increased beneficiaries' monthly premiums by 27% according to the Medicare Rights Center. This would add $45.93 per month to the $170.10 premium for this year, or $216.03.
  • Critics say that Medicare enrollment rules are confusing and easy to misunderstand. If you are able to delay Part B enrollment until you turn 65, if you have qualified insurance through your employer, there are still deadlines you must meet once the coverage ends to avoid penalties for late-enrollment. You can appeal the charges. However, your enrollment error must be due to incorrect information being provided by government officials.
  • Part D, which covers prescription drug coverage, comes with a late enrollment penalty. It is 1% of the national premium ($33.37 in 2022) multiplied by how many months you haven't had Part D or creditable coverage. It lasts as long as you have Part D.
  • The new Senate bill requires that information be included on Social Security statements beginning at 60 years old that details the rules and procedures for Medicare enrollment. This will help older people understand their responsibilities when signing up. As such, they would have to read their Social Security statements several times before enrolling. This is because they are more likely to do so as they get closer to retirement. This measure was included in 2020 legislation, which addressed other issues related to Medicare enrollment. It also addresses gaps between signing up for coverage and actually receiving it. Although the House passed the provision, it was dropped by the Senate.

Comments are closed.

    Ted Czabanowski

    Licensed Insurance Agent in Rhode Island

    Archives

    September 2022
    July 2022
    June 2022
    April 2022
    February 2022
    January 2022

    Categories

    All

    RSS Feed

We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options.

A sales agent may mail, call or e-mail as a result of completing the information to discuss Medicare Advantage, Prescription Drug Plans or Medicare Supplement Insurance.
Call Ted Czabanowski now at 401-885-7467
or 
click here to request a consultation:


SEE OUR REVIEWS

ABOUT  |  BLOG  | DOCUMENT UPLOAD | CONTACT

  • Home
  • About
    • Service Area
  • Document Upload
  • Contact
  • Blog