Medicare Enrollment Mistakes Can Lead to Permanent Penalties

"When you sign up is very important. The initial enrollment period starts three months before your 65th birthday and runs until three months after your birthday. There are penalties if you fail to sign up during this time, resulting in higher Part B premiums for your entire life. You'll pay an extra 10% for each year you could have signed up for Part B, but didn't."

"For example, if you waited two full years to sign up for Part B and didn't qualify for a Special Enrollment Period, your premium would go up from $202.90 to $243.48. That hike will add up over time."

"One exception: If you're still working at age 65 and have employer-sponsored health insurance (or if you're covered by your spouse's company plan), you can delay signing up for Part B without penalty. It's important to note that Medicare doesn't consider COBRA plans to be eligible."

Medicare enrollment deadlines carry significant financial consequences for the 4.1 million Americans turning 65 annually. Part A provides free hospital insurance for those with 10 years of Medicare tax contributions. Part B covers outpatient services with monthly premiums averaging $202.90 in 2026, increasing for higher earners. The initial enrollment period spans three months before and after your 65th birthday. Missing this deadline triggers a permanent 10% premium increase for each year of delay. For example, a two-year delay raises premiums from $202.90 to $243.48 monthly. Exceptions exist for those still employed with employer-sponsored coverage, though COBRA plans don't qualify for penalty exemptions.

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