HealthCoverage News & Analysis
2 articles
Market Mood
Medigap Guaranteed-Issue Window Opens for 6 Months at Age 65
Americans receive a one-time, 6-month guaranteed-issue window for Medigap coverage upon enrolling in Medicare Part B at age 65. After this period, insurers in 46 states can deny coverage based on health history permanently. Currently, 42% of Traditional Medicare beneficiaries have a Medigap policy, and this percentage rises to about 80% among those without employer or Medicaid coverage. This information highlights the importance of timely enrollment for securing supplemental insurance, which can greatly affect out-of-pocket costs for retirees.
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50% Penalty Imposed for Late Medicare Part B Enrollment Explained
A retiree, aged 67, found out he would incur a permanent 50% surcharge on his Medicare Part B premium of $203 due to a late enrollment. This penalty affects anyone who relies on retiree health plans, COBRA, or severance-funded benefits, as these do not qualify for delaying Part B without penalty. The Medicare Special Enrollment Period allows delaying Part B only for active employment group coverage. This misunderstanding can result in significant long-term costs for higher earners, emphasizing the importance of understanding Medicare enrollment rules.
Read More: 50% Penalty Imposed for Late Medicare Part B Enrollment Explained