The people receiving Social Security benefits are automatically enrolled for Medicare Part A and Part B when they become eligible for Medicare. Others have to enroll manually. Having said that, you are not obligated to sign up for Medicare when you turn 65. However, most seniors get premium-free Part A, and you can use it with other health insurance.
If you are not automatically enrolled for Medicare and didn’t sign up when you first become eligible, you may have a late enrollment penalty for delaying enrollment.
Is Medicare Part A Mandatory?
If you have worked and paid taxes for at least ten years, Medicare Part A can be premium-free. Those that qualify for premium-free Part A have little reason not to take it. In fact, it is mandatory to enroll in Medicare Part A if you don’t want to forfeit your Social Security benefits.
However, it makes sense to delay enrolling in Part A if you want to contribute to an HSA after turning 65. Once you sign up for Medicare Part A and it is active, you can’t add to HSA.
Is Medicare Part B Mandatory?
It is not mandatory to register for Part B when you turn 65. But you’ll want to apply for it if you don’t have any other creditable coverage. You need to pay a monthly premium for Part B, and this is usually removed from your Social Security check. Besides, if you are still working after 65 and your employer provides health insurance, you may delay signing up for Part B.
However, while Medicare Part B is not mandatory, you can be subject to a late enrollment penalty if you wait too long. Those that choose to delay enrolling in Medicare Part B can pay up to 10% of the standard Medicare Part B premium for every 12 months they could have signed up for Part B but didn’t.
Is Medicare Part D Mandatory?
You are not mandated to enroll in the Part D plan, but prescription drug coverage is good to have. If you decide to delay enrollment when due, you will need to pay a late enrollment fee. But you won’t be penalized for late enrollment if you have other creditable drug coverage.
If you’d like a Medicare expert to walk you through each part of Medicare, schedule a free consultation with one of our agents today. Our Medicare specialists will help you answer difficult questions and determine your eligibility to enroll for a Medicare plan.