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The Perils of not enrolling in Medicare Part B


dr with stethoscope

First, we will talk about what Medicare Part A and Medicare Part B cover. Medicare Part A is hospitalization, this means it will cover your room if you are hospitalized. Medicare Part B is Medical, this covers everything else, such as your doctors, tests and blood work to name a few.


Your Medicare Part A is no cost for most, as long as you have the 40 work credits needed to be eligible.


If you are still working and you have Creditable Coverage through your employer, you can opt out of your Medicare Part B without any penalties until you decide to retire. Then you will need to enroll in Medicare Part B.


Your Medicare Part B premium will cost you money, for most it is $164.90 being taken out of their checks monthly. There are some who are not collecting their Social Security yet and they need to pay quarterly premiums for Medicare Part B. This is a dilemma for most seniors these days, but I want you to be sure you are making an intelligent and informed decision if you think you want to decline your Medicare Part B.


Now we will look at the problems that can arise if you decided to opt out of Medicare Part B and do not have other coverage (like a job-based health plan).

  1. You will be penalized for every month that you do not have Medicare Part B. The penalty is 10% for every year you are without it. (12 full months) or in other words, if you have not had your Medicare Part B for the entire year of 2023, it would cost you and extra $16.49 going forward. This penalty will also stay with you for the rest of your life and if you still want to opt out of Medicare Part B, that amount will continue to get larger each year.

  2. You can only apply for Medicare Part B (after your initial enrollment period) in January, February or March. If you apply for it in January it will start February 1st and so on.

  3. If you receive a diagnosis of an illness that needs treatment, you have no insurance to cover it since that would fall under Medicare Part B.

  4. You will not be eligible for a Medicare Supplement or Advantage (Part C) Plan.


I know that a great majority of seniors are thinking, how can I afford to have $164.90 removed from my check and still live on the income left over?


There is help that you can apply for. Each state has a Medicare Savings Program (MSP) that is offered to help with this dilemma. The MSP program is based off of income and resources and if approved, will, at a minimum, pay your Medicare Part B premium for you, waive your penalties if you have any and also give you a low-income subsidy (LIS) for your Prescription drugs.


Perfiniti Licensed Agents can help you make an informed decision on your needs and will also help you to apply for your Medicare Savings Program.


Call Perfiniti today at 888.885.8361

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