Avoiding a Bitter Pill: Medicare Penalties for Late Enrollment

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United States citizens are eligible for Medicare when they reach 65. If you are receiving benefits from Social Security (or the Railroad Retirement Board) at least 4 months before your 65th birthday, you will be automatically enrolled in Medicare. If you are not receiving Social Security benefits at 65, you will need to watch the calendar carefully, as there is a finite opportunity to sign up for Medicare–a window of time before or after you become eligible. If you don’t sign up in time, there are penalties.

What are these penalties? And how can you avoid being penalized?

When to Sign Up for Medicare

The initial enrollment window for Medicare is seven months, around your 65^th birthday. The window opens three months before you turn 65 and closes three months after you turn 65. Pre-existing conditions will not prevent you from getting Medicare (although they could limit your ability to get a Medigap policy.)