ASK RUSTY (cont.)

your IEP and enroll later, and if you didn’t have creditable employer healthcare coverage after age 65, you will be subject to a late enrollment penalty, which will permanently increase your Medicare Part B (and Part D) premiums.

Medicare Part B is coverage for doctors & outpatient services, and Part D is prescription drug coverage, both of which require a premium; Medicare Part A is hospitalization coverage which is free if you’re eligible for Social Security. If you have “creditable” employer coverage when you turn 65, you can simply delay enrolling in Medicare Part B until your employer coverage is about to end, or until after it ends during an 8 month Special Enrollment Period during which you can enroll in Medicare Part B without penalty. But for Part D prescription drug coverage, you must enroll in a private plan within 63 days of your 65th birthday, or the end of your employer drug coverage, or you will incur a Part D late enrollment penalty for enrolling later.

And remember that Medicare late enrollment penalties never go away – they are recurring for the rest of your life.

The bottom line is this: you don’t need to pre-register for either Social Security or Medicare. You can simply enroll when you are ready for benefits to start (keeping in mind that for Medicare, you must have “creditable” alternative coverage after age 65 to avoid late enrollment penalties).

This article is intended for information purposes only and does not represent legal or financial guidance.

It presents the opinions and interpretations of the AMAC Foundation’s staff, trained and accredited by the National Social Security Association (NSSA). NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (amacfoundation.org/programs/

The 2.1 million member Association of Mature American Citizens is a vibrant, vital senior advocacy organization that takes its marching orders from its members. AMAC Action is a non- profit, nonpartisan organization representing the membership in our nation’s capital and in local Congressional Districts throughout the country. And the AMAC Foundation ( www. AmacFoundation. org ) is the Association’s nonprofit organization, dedicated to supporting and

educating America’s

Seniors. Together, we act and speak on the Association members’ behalf, protecting their interests and offering a practical insight on how to best solve the problems they face today. Live long and make a difference by joining us today at www. amac. us/ join- amac.