When you first get Medicare coverage, it is essential to know that Original Medicare consists of two main parts- Part A and Part B. Part A is the first part that beneficiaries need to be enrolled in. So, all new beneficiaries need to know how to sign up for this part which, in general, is your hospital insurance coverage. Hospital insurance includes inpatient services like skilled nursing care, hospice, and home health care.
How To Enroll In Part A?
For most people, enrolling in Part A is easy because most people qualify for premium-free part A. If you or your spouse have worked for at least 10 years or 40 quarters and paid your Medicare taxes, the Part A premium will cost zero dollars. Also, for lots of beneficiaries enrolling in Part A is automatic, if they receive Social Security benefits. However, if you are not worked long enough or don’t receive Social Security benefits you can sign up for Part A by yourself.
On the other hand, if you didn’t work long enough, you’ll have to pay monthly premiums for part A as long as you enrolled in Medicare. For example, if you have worked from 30 to 39 quarters your monthly premium will be 274$ month, and if is it lesser than that you need to pay the full price which is 499$ a month.
To sign up, first, you need to be eligible. All American citizens or legally admitted citizens who lived in the States for a minimum of five years and are 65 or more are eligible to enroll in Medicare. Part A Enrollment is also possible for people younger than 65 with certain disabilities like ESRD or ALS and receive Social Security Disability benefits.
Part A Enrollment Periods
There are several enrollment periods when it comes to Medicare, and each period has its own rules and conditions. It is important to know when is the best time to enroll and why. So in this blog, we will explain each enrollment period to help you avoid late enrollment penalties.
Initial Enrollment Period
The Initial Enrollment Period is the most important enrollment period there is, and most Medicare beneficiaries enroll during this time. This period is different for each individual because it starts when you are first eligible for Medicare coverage. Your IEP starts three months before you turn 65 and lasts 3 months after you are 65. This is a 7-month open enrollment window in which beneficiaries can purchase Part A, Part B, Part C, or Part D (drug prescription coverage). If you are not signed automatically in Part A, don’t miss your IEP because you can face late enrollment penalties.
Annual Enrollment Period
The Annual Enrollment Period is an open enrollment period and it is the second most important for Medicare beneficiaries. This period is designed for enrollees so they can change their plans for a new calendar year if they are not satisfied with their current plans. AEP lasts from the 15th of October through the 7th of December and during this, you can drop your Medicare Advantage to get Original Medicare or vice versa. Also, you can drop or change your Part D drug prescription plans if the medications on the current one don’t fit your needs anymore.
Special Enrollment Period
This enrollment period is designed for specific living situations, and you can also enroll in Part A during SEP, without paying any penalties for it. If you have, for example, a Medicare Advantage plan and you have moved to another country and your provider’s network doesn’t accept your plan anymore in this area you can use SEP to switch back to Original Medicare. Also, you may qualify for SEP if you worked after 65 and were under your employer’s group health plan but lost your coverage.
General Enrollment Period
The General Enrollment Period happens every year from January 1st to 31st of March, and you can enroll in Part A during this time if you weren’t before. This period allows enrolling to get Medicare coverage if they have missed initial enrollment and don’t qualify for special enrollment. However, if you choose to enroll during GEP, you will have to pay a late enrollment penalty. So, as already said it is always best to enroll in Medicare during IEP if you aren’t under your employer’s group health plan anymore.
Late Enrollment Penalty
Most beneficiaries can easily avoid late enrollment penalties. It is important to not delay enrolling in Part A. If you miss your Initial Enrollment Period, which begins when you are first eligible for Medicare, and choose to enroll later, you will have to pay penalties. If you are not eligible for the free part A premium and miss the initial enrollment your monthly premium for part A will be 10% higher. The cost of the penalty is twice the number of years you didn’t sign up when first eligible. For example, if you become eligible before 3 years you will need to pay a late enrollment penalty for 6 years. However, this is not the case for beneficiaries who are eligible for premium-free Part A no matter when they choose to enroll.