Dave Ramsey, a personal finance author and radio host, warns Americans about a major problem with Medicare. He says that understanding the different parts of Medicare and the enrollment deadlines is very important. Missing the Initial Enrollment Period (IEP) can lead to higher premiums for life.
The IEP starts three months before turning 65 and ends three months after. If you miss it, you may have to pay penalties that get bigger the longer you wait. There are some exceptions, like if you live overseas or lose employer coverage.
This can qualify you for a Special Enrollment Period (SEP). But if you miss both the IEP and SEP, you have to wait for the General Enrollment Period from Jan. 1 to March 31.
Medicare enrollment deadlines and penalties
This usually comes with a lifelong penalty of higher premiums. Ramsey also notes that the Open Enrollment Period from Oct.
15 to Dec. 7 is not for initial sign-up. It’s for people already on Medicare to switch plans or make changes.
There’s another window from Jan. 1 to March 31 to make changes to Medicare Advantage plans. His advice serves as an important reminder for American workers planning their retirement healthcare.
Making informed decisions and enrolling on time is key to avoiding costly mistakes with Medicare coverage.
