You'll have to pay a 20% late enrollment penalty (10% for every full 12-month period you could have enrolled in), plus the standard monthly premium for Part B. The Medicare Part B late enrollment penalty increases your monthly Part B premium by 10% for each full year not covered by Part B. See the late enrollment penalty for Part B in Medicare, gov. This change is due to several factors, such as the dissociation of the ages of eligibility for Medicare and Social Security, demographic changes, and evolving employment patterns.
For example, more and more older adults are working later in life and deferring Social Security, although they may not realize that doing so affects their Medicare enrollment and coverage. Others may choose to delay Medicare coverage appropriately or not to do so to rely on other coverage, such as a plan offered by the employer. Unlike those who automatically enroll, when this cohort enrolls in Part B, they must actively circumvent a series of complicated Medicare rules and strict deadlines. Mistakes are common and have serious consequences, such as severe penalties for late enrollment.
A recent summary from AARP's Public Policy Institute (PPI) examines these delays, sanctions and opportunities for reform. Legislators could modernize enrollment in Medicare and the Part B LEP to strengthen the financial security of beneficiaries and the program. As described below, the possible approaches recommended by the AARP PPI include strategies to improve communication with beneficiaries and reduce their costs. The Part B LEP needs comprehensive reforms.
Medicare Rights often hears from people who inadvertently didn't sign up for Medicare on time and are living with the harmful consequences. If there are no solutions, more Americans will face these difficulties: the population ages rapidly, works later in life, and the gap between eligibility for retirement benefits and Medicare continues to widen. With an increasing number of people reluctant to make critical decisions about enrolling in Part B, the time has come for systemic improvements. We urge Congress to intervene without delay to simplify Medicare enrollment, support informed decision-making by beneficiaries, and resolve any difficulties that arise.
The clear and simple advice of the BENES Act 2.0 for those approaching Medicare eligibility would help, as would reducing or eliminating the Part B LEP, expanding access to help, collecting additional data and strengthening the participation of MSPs. We look forward to working with advocates and policymakers to promote these goals. Read the AARP PPI report, entitled Millions of People Pay Lifetime Penalties for Enrolling Late in Medicare After Missing Key Deadlines. Donate today and make a lasting impact.
