Are you one of the 60 million American seniors covered by Medicare?
Medicare coverage keeps you healthy and out of hospitals. It costs much less than private insurance. Yet, there are some penalties associated with Medicare coverage.
Are you wondering what Medicare penalties are and the different ways to avoid Medicare penalties? Keep reading to find out!
Part A Penalty
Medicare Part A is a hospital insurance plan covering inpatient and skilled nursing facility care. You may have to pay the Part A late enrollment penalty if you’re eligible for premium-free Part A, but you don’t sign up for it when you first become eligible.
The penalty is 10% of the “Part A premium” for each 12-month period that you could’ve had Part A coverage. Yet, you will not be subject to Medicare penalty if you qualify for a Special Enrollment Period and are covered by a group health plan based on your or your spouse’s current employment.
Part B Penalty
Medicare Part B has a monthly premium that most people have deducted from their Social Security checks. This helps cover outpatient medical care, including preventive care, doctors’ fees, and other medical services not covered by Part A.
Part B penalty is calculated as 1% of the national average premium for each month the individual was not enrolled in Part B. In addition, a late enrollment penalty may be assessed if an individual does not enroll in Part B when they are first eligible. This penalty is 10% of the Part B premium for each year the individual was not enrolled.
The easiest way to avoid the Medicare Part B late-enrollment penalty is to sign up for Part B during your Initial Enrollment Period.
Part D Penalty
Medicare Part D is a prescription drug coverage plan that helps cover the cost of certain medications.
The late enrollment penalty is a one-time fee you may have to pay if you go without Part D coverage for more than 63 days. The coverage gap penalty is a monthly fee you’ll have to pay if you go without coverage for more than 63 days.
The charge is 1% of the national average premium for each month the person is not enrolled. The best way to avoid this is to apply for a hardship waiver. This Medicare penalty waiver allows beneficiaries to waive their penalties if they can prove they cannot pay their premiums.
Want to learn more about how to avoid Medicare penalties? Click on the link.
Understanding Medicare Penalties and Tips to Avoid It
You may be charged many Medicare penalties if you do not follow the rules. These can include financial penalties and losing your Medicare coverage altogether.
The vastness of the Medicare program means it’s pretty easy to trigger a notice or two. Or even worse, a total obligation. That’s why it’s essential to know and follow the rules to avoid these penalties.
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