Costly Medicare Mistakes to Avoid When You Are Turning 65 and Still Working

Medicare is essential for every American that's 65 or older. However, when you are still working, and you are not yet 65, you might not take the guidelines surrounding Medicare enrollment 'seriously.' This should not be the case as you need to plan for Medicare as early as possible, even if you have medical insurance from your current employer and plan to still work past age 65.

There are some mistakes people that are about to be eligible for Medicare make, which might be costly. It would be best if you were not one of these people as we will help you point out these mistakes and how to avoid them.

Mistakes To Avoid

As we mentioned earlier, there are some mistakes that you should avoid when you want to enroll in Medicare. Check out some of these mistakes below.

1. Late Enrollment

One of the major mistakes prospective Medicare enrollees make is enrolling at the wrong time. Timing is crucial when you are approaching 65 as failure to enroll at the right time incurs a penalty. First, there’s something called Initial Enrollment Period. This period is a 7-month period in which you need to enroll for Medicare. The seven-month period starts three months before your 65th birthday month and three months after your 65th birthday month. For example, if your 65th birthday is in August, you have to enroll in Medicare between May and November.

Now, what are the penalties for enrolling late for Medicare?

Late Enrollment Penalty For Part A

Medicare Part A is free for most people, yet there are some that do not qualify for the premium-free Part A. As someone that doesn’t qualify for free Medicare Part-A, you have to enroll when you are first eligible. Failure to do that might lead to your monthly premium going up by 10%. You’ll also have to pay this higher premium for twice the number of years you didn’t sign up.

Late Enrollment Penalty for Part B