Don’t Wait to Enroll in Part B When Retiring
and Enrolling in COBRA!
Dear Toni:
I am a 62 year old female who was a Vice President of the company which I retired from June of 2014. My husband is 75 and has always been carried on my health insurance policy. I was advised to enroll John in COBRA when I retired and now our Medicare nightmare has escalated to my husband not being able to enroll in Medicare when COBRA ends this September 5, 2015.
Now I am finding out that there will be a penalty for John not enrolling in Part B when he should have and he will not have Part B until he enrolls after January 1, 2015 and his Part B will not begin until July 1, 2016. What is he to do for doctor, outpatient surgery or anything under Medicare Part B since he will have none of the benefits from September 5,2015 to July 1, 2016. No one has ever told us when the time limit is and I have never received a Medicare & You handbook because I am 62 not 65. Didn’t know the rules were in the handbook until I began reading your column.
Please let your readers know how important it is to enroll in Medicare Part B at the correct time….
~ Anne from Humble, TX
Good Morning Anne:
You are right that people should not wait to enroll in Part B when retiring and enrolling in COBRA! Not only is not having Part B to lean on costly, but the penalties for Part B are very costly as well.
Social Security keeps track of your records and when you are past 65 and have delayed your Part B. Then you must get your company HR department to sign off on Social Security form “Request for Employment Information”. If that form is not filled out properly and within the correct amount of time, you can receive a 10% penalty for every 12 month period that you could have been on Medicare Part B, but failed to enroll.
Always, make sure that your Part B begins the day you lose your company benefits or the day your COBRA plan starts. See pages 26-27 of the 2015 Medicare & You handbook on “Should I get Part B?”, when you were first eligible and what the late penalties are. Many think the Part B rule starts when COBRA ends in18 months. They are not aware that the Special Enrollment Period begins the month they lose their company benefits or employment ends and go on COBRA.
Many enroll in Part B with a BIG SURPRISE like you have in regards to your husband’s Medicare and are penalized. All of the arguing with Social Security won’t help, it’s the rule.
My advice is always have Part B in place when leaving your job or losing your company benefits. Do not wait! Your Medicare Part B penalty last for each month as long as you are on Medicare or have passed away. The penalty last the rest of your lifetime. You must get this right the first time! There might not be a second chance!
- Pasadena/Clear Lake Area Confused about Workshop– Tuesday, August 18,2015 6:00PM to 8:00PM at the Integrity Bank-Southeast Location,6025 Crenshaw Road, Suite 100,Pasadena, TX 77505.
- First Woodlands Area Confused about Workshop-Tuesday, August 25, 2015 6:00PM to 8:00PM at the Integrity Bank-Woodlands Location 1699 Research Forest Drive, Suite 100, Shenandoah, TX 77380.
Reservations are required for both workshops. RSVP to 832/519-TONI (8664)
Toni King, author of the new Medicare Survival Guide®, a simple guide that puts Medicare in “people” terms, is on sale at www.tonisays.com. Email Medicare and Social Security questions to www.tonisays.com/ask-toni or call 832/519-8664.
