Part B – Medical Insurance
Covers;
Doctors’ services, hospital outpatient care, and home health care. Also covers, some preventive to help maintain health and to keep certain illnesses from getting worse .
Enrollment;
If you didn’t sign up for Part A and/or Part B (for which you pay monthly premiums) when you were first eligible because you’re covered under a group health plan based on current employment, you can sign up for Part A and/or Part B as follows:
Anytime that you or your spouse (or family member if you’re disabled) are working, and you’re covered by a group health plan through the employer or union based on that work
Or
During the 8-month period that begins the month after the employment ends or the group health plan coverage ends, whichever happens first
If working or covered by employed spouse It may be to your advantage to delay Part B enrollment. When the employment ends, three things happen:
1. You may get to elect COBRA coverage, which continues your health coverage through the employer’s plan (in most cases for only 18 months) and probably at a higher cost to you.
2. You have 8 months to sign up for Part B without a penalty. This period will run whether or not you elect COBRA. If you elect COBRA, don’t wait until your COBRA ends to enroll in Part B. If you enroll in Part B after the 8 months, you may have to pay a penalty.
3. When you sign up for Part B, your Medigap open enrollment period begins.
Costs;
You pay the Part B premium each month. Most people will pay the standard premium amount. However, if your modified adjusted gross income as reported on your IRS tax return from 2 years ago (the most recent tax return information provided to Social Security by the IRS) is above a certain amount, you may pay more (See our article High Income Earners for more information).
Your modified adjusted gross income is your adjusted gross income plus your tax exempt interest income. Each year, Social Security will notify you if you have to pay more than the standard premium. Whether you pay the standard premium or a higher premium can change each year depending on your income. If you have to pay a higher amount for your Part B premium and you disagree (even if you get RRB benefits), call Social Security at 1-800-772-1213.
Part B Late Enrollment Penalty
If you don’t sign up for Part B when you’re first eligible, you may have to pay a late enrollment penalty for as long as you have Medicare. Your monthly premium for Part B may go up 10% for each full 12-month period that you could have had Part B, but didn’t sign up for it.
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