What is the consequence of late enrollment in Medicare Part B?

A consequence of late enrollment in Medicare Part B is that individuals will incur a penalty of 10% for each full 12-month period they delay their enrollment. This penalty is added to the standard premium amount for Medicare Part B and is designed to encourage timely enrollment. If someone qualifies for Medicare at age 65 but chooses to delay enrolling without qualifying for a special enrollment period, they will face this penalty when they eventually sign up.

It's important to note that the penalty does not apply to the months that they were covered by certain other forms of health insurance, such as employer-sponsored plans, which can allow for a special enrollment period without incurring penalties. Being aware of this 10% penalty is crucial for individuals nearing eligibility for Medicare, as it can significantly increase their healthcare costs over time.