Your Medicare Enrollment Window

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When you become eligible for Medicare (most commonly at age 65), there is a specific enrollment window when you can sign up to avoid late enrollment penalties. 

However, the signup window is different for every person, based on the individual’s date of birth.

Determining Your Signup Window

Unfortunately, many individuals miss their designated registration window and are later shocked to find out their Medicare benefits will come at a higher price for this oversight. 

Furthermore, the opportunities to register become much more limited after the initial penalty-free window closes. It is therefore crucial to act quickly when your registration window nears.

Your Medicare enrollment window generally begins 3 months before the month you turn 65 and continues for 3 months after that month, for a total of 7 months. 

While enrollment is available throughout this entire period, applying earlier can help reduce the risk of gaps in coverage from when your Medicare benefits begin.

There is one exception to the above rule. You generally have not had to sign up if you are:

  • Currently covered by an employer group health insurance plan  (actively employed) AND
  • That plan covers more than 20 employees AND
  • You are still working (or your spouse is still working if you are a dependent on the plan)

Coverage such as COBRA, retiree health plans, or individual self-employed plans generally do not qualify for this exception.

Medicare Part B can normally be delayed for as long as you remain covered by a qualifying employer group health plan based on current, active employment.

When that employment or employer coverage ends, there is a limited time window to enroll in Medicare Part B to avoid penalties and delays in coverage. 

If you are eligible to postpone signing up, participants commonly enroll in Medicare part A because many find that it’s premium-free.

Important Things to Know About Medicare

  • For many people who are retired and age 65 or older, Medicare typically serves as the primary health insurance. In these situations, other coverage—such as retiree health plans or supplemental insurance—often pays after Medicare. 
  • If you or your employer are contributing to a Health Savings Account (HSA), enrolling in any part of Medicare can affect your eligibility to continue those contributions.
  • If Medicare coverage is not in place when it is expected to be primary, other insurers may limit what they pay, which can lead to unexpected out-of-pocket costs. 
  • Medicare does not cover all medical services. For example, long-term care, dental, vision, and hearing services are generally not covered.
  • Medicare enrollment is generally automatic in certain situations, such as when someone is already receiving Social Security benefits at age 65. Even then, automatic enrollment generally applies only to Medicare Part A and Part B. Other parts of Medicare, including Part C and Part D, typically require a separate enrollment decision.
  • Medicare isn’t free, and enrolling late can lead to higher costs through late enrollment penalties in some situations.
  • Some parts of Medicare involve monthly premiums and other out-of-pocket costs, which can be higher than many people expect.
  • Medicare is not designed to cover every health care expense on its own. Instead, it generally works as a foundation of coverage, with many people choosing to pair it with other forms of insurance to help cover additional costs and services.
  • If Medicare enrollment is delayed beyond the designated registration window, higher premiums may apply when coverage is added later. In many cases, these higher costs can continue for as long as Medicare coverage is in place, depending on the situation. 

It’s no secret that signing up for Medicare and trying to understand the available options can be very confusing. 

Enlisting the help of an independent insurance broker, as well as calling on the advice of your financial planning team, is typically well worth the effort. This is something our financial advisory firm in Spokane, WA, helps clients understand as part of their overall financial planning.  

Whatever route you take, remember that time is of the essence! It’s never too early to become educated about the Medicare plans available and their respective benefits. 

Then, by marking your calendar in advance, signing up as soon as your registration window arrives can be a walk in the park.

Schedule a complimentary insight meeting with a Spokane financial planner to discuss your situation and how we may be able to help.