How to Avoid Medicare Penalties

Medicare penalties aren’t just a one-time fee — they can last a lifetime and add up quickly. Here’s a quick rundown of the “wrong answers” you want to avoid:

• Part A: Rare, but possible. If you don’t qualify for free Part A, late enrollment can lead to penalties.

• Part B: Delay signing up, and you might pay an extra 10% for each 12-month period you were eligible but not enrolled.

• Part D: Skip drug coverage for 63+ days without having creditable coverage? You’ll face a penalty added to your monthly premium.

Let’s Fill in the Blanks. You can avoid penalties when you:

1. Sign up during your Initial Enrollment Period (IEP)

Your 7-month window around turning 65 is your chance to get in without penalties.

2. Maintain creditable drug coverage

This is health insurance or prescription drug coverage that meets or exceeds the level of benefits provided by Medicare. Employer plans, union coverage, or VA benefits often count. This avoids the Part B and Part D penalty.

3. Use a Special Enrollment Period (SEP)

Still working at 65? No problem. Many people keep their employer coverage past 65. That’s fine if it’s creditable coverage. Delay Part B while you’re covered, then sign up penalty-free once that ends (retirement) with a SEP and proof of coverage form.

4. Review your coverage every year

Plans can change or terminate. Oct 15–Dec 7 is your chance to switch and avoid getting stuck or not have coverage.  Read your annual renewal (ANOC) carefully.

5. Work with a Medicare broker

You don’t have to play alone.  Working with a broker who knows the local options ensures that you don’t miss deadlines, helps compare plans, and keeps you penalty-free.  Don’t guess at Medicare — let’s make sure you always have the winning answer.

Call Diane Andree at 631-337-3625 or visit www.ABCMPB.com to play the Medicare game the smart way.

Avoid Medicare Penalties