Late Medicare Enrollees Face Steep Penalties. If a New Bill Passes, That Could Change.
Medicare eligibility begins at 65, and seniors' initial enrollment window begins three months before the month of their 65th birthday and ends three months after that month. Signing up for Medicare Part B beyond that point, however, can result in costly lifelong penalties. But a new bill is looking to change the rules in that regard, and it could spare some seniors a world of added costs.
Signing up for Medicare late means facing extra costs on a permanent basis. Specifically, you'll be penalized to the tune of 10% of the standard Part B premium for each year-long period you were eligible to enroll, but didn't. (Because Medicare Part A is generally free, there's no penalty for late enrollment in that program.)
But some people don't want to sign up for Medicare at 65. For one thing, once you enroll in Medicare, you can no longer make contributions to a health savings account, and some seniors are loath to give up that benefit due to the tax savings involved.
Source Fool.com
