Penalty for Late Enrollment of Part B?

[jacobtn]

I have someone who was recently informed that his company is no longer going to carry the retirees group health insurance. The folks affected are retirees on Medicare and had group coverage until the corporation decided to drop them.

One of the individuals opted to not have part B when he turned 65 last year. Now when he contacts SS they are telling him since he is already retired, he will have to wait until next year to get part B and pay the hefty penalty. Does this make sense? I knew in many cases folks can wait to get part B until they leave group coverage, but those folks were in fact working and retired when they opted to pick up part B. Sounds like this guy screwed himself by choosing to forego part B (although he wouldn't have needed it had the company not dropped everyone).

 

[TwoCents]

I have someone who was recently informed that his company is no longer going to carry the retirees group health insurance. The folks affected are retirees on Medicare and had group coverage until the corporation decided to drop them.

One of the individuals opted to not have part B when he turned 65 last year. Now when he contacts SS they are telling him since he is already retired, he will have to wait until next year to get part B and pay the hefty penalty. Does this make sense? I knew in many cases folks can wait to get part B until they leave group coverage, but those folks were in fact working and retired when they opted to pick up part B. Sounds like this guy screwed himself by choosing to forego part B (although he wouldn't have needed it had the company not dropped everyone).

SSA makes a distinction between active coverage as a working employee and retiree coverage. He should have picked up Part B when he transitioned to a retiree plan. Next stop Part B LEP! The General Enrollment Period (and how Part B doesn't start until 7/1) is another conversation and just something else that really doesn't make sense about how it's set up.

 

[Matthew King]

I have someone who was recently informed that his company is no longer going to carry the retirees group health insurance. The folks affected are retirees on Medicare and had group coverage until the corporation decided to drop them.

One of the individuals opted to not have part B when he turned 65 last year. Now when he contacts SS they are telling him since he is already retired, he will have to wait until next year to get part B and pay the hefty penalty. Does this make sense? I knew in many cases folks can wait to get part B until they leave group coverage, but those folks were in fact working and retired when they opted to pick up part B. Sounds like this guy screwed himself by choosing to forego part B (although he wouldn't have needed it had the company not dropped everyone).

Unfortunately, he should have opted-in. Not a good day for him! The longer he waits now, the worst it gets!

 

[riskybiz]

The only thing he can do is appeal the decision on getting bad information. I have seen a few instances of this happening, and they had to pay back part B premiums back to his original Part B effective date.

 

[LostDollar]

Did he retire and drop active employee group coverage right at age 65?

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(although he wouldn't have needed it had the company not dropped everyone)

I am not sure that is a true statement.

 

[DS4]

Did he retire and drop active employee group coverage right at age 65.

Not according to the first paragraph in the post