Part A penalty?

[keith365]

If a self employed person is working past the age of 65, and sign up for part A and B, I know that in every case i've seen, there's no part B penalty, because their health insurance is considered credible.
But what about part A? Is there a penalty for signing up for part A after age of 65? I know that they probably should, but I never hear about a part A penalty.
Do most self employed people put themselves on credible group health insurance?

 

[hockeyday]

What DOES the self employed person have for health insurance? I know of no self employed person that put themselves on a group plan, I have people working past 65 that have a group HSA plan and in that case they can not take part A and contribute to the HSA

 

[rmhaire]

But what about part A? Is there a penalty for signing up for part A after age of 65? I know that they probably should, but I never hear about a part A penalty.

Yes there is a part A penalty but we don't see it often. It's for those folks that don't have enough credits to qualify for free part A. (40 Quarters)

If you have enough credits, part A is free and there is no penalty for late enrollment.

 

[somarco]

Do most self employed people put themselves on credible group health insurance?

My guess is "most" do not have group insurance and those that do are probably covered by a small group plan where Medicare is primary and the EGH is secondary.

In that situation they should enroll in A & B at age 65.

 

[goillini52]

If a self employed person is working past the age of 65, and sign up for part A and B, I know that in every case i've seen, there's no part B penalty, because their health insurance is considered credible.
But what about part A? Is there a penalty for signing up for part A after age of 65? I know that they probably should, but I never hear about a part A penalty.
Do most self employed people put themselves on credible group health insurance?

Part A late enrollment penalty. If you have to buy Part A, and you don't buy it when you're first eligible for Medicare, your monthly premium may go up 10%. You'll have to pay the penalty for twice the number of years you didn't sign up.

 

[Bob G]

You made an error in your assessment of Part B.
Unless the self employed person has 20 employees, there will be a penalty if they don't sign up for Part B at age 65. In order to defer signing up for Part B penalty free you have to
a) be employed (or be the spouse of someone employed)
b) be on the employer plan of the person in a) who is employed
and
c) the employed's company has to have more than 20 employees.

Creditable only applies to Part D. You can defer Part D if you are on Creditable coverage as far as Part D is concerned - which includes COBRA.
However, COBRA is not considered Group coverage to delay Part B -if on COBRA you have to go on Part B within 8 months of losing employment.

 

[somarco]

You made an error in your assessment of Part B.

Who are you addressing?

 

[Bob G]

The original poster

 

[somarco]

The original poster

@keith365 asked legitimate questions. Some are here to learn, others to teach. Even experienced agents have what appears to be a rudimentary question from time to time.

And his Part B assessment was understated . . . possibly due to lack of experience with small group plans.

 

[Bob G]

True.
But I wanted to make it clear that most self-employed people need to sign up for Part A AND Part B (they usually have less than 20 employees) whether they stay on their current plan (which would be secondary) or come off that plan and move to Medicare entirely.
He made a statement about "credible" (it's actually creditable) coverage. That pertains to Part D.
It seems he was confusing one for the other.
He might have already or could in the future cause many to have a penalty ticking time bomb if they don't sign up for Part B at that time due to his counsel. It seems like he was inferring that if someone has an employer plan, no matter what, they could defer Part B without penalty.