Welcome Guest! To enable all features please Login or Register.

Notification

Icon
Error

Federal Employees Benefits Q &A

Do you have questions about your federal employee CSRS or FERS pension/annuity or federal employee retirement planning? Concerns about your Thrift Savings Plan (TSP) account or what about federal employee pay and leave issues?

Ask your question here.

You must Register before posting to this forum.
The Q&A forum is moderated by Ed Zurndorfer -- an expert on federal employee benefits -- and a Certified Financial Planner, chartered life underwriter and chartered financial consultant in Maryland.

Zurndorfer is also the author of several federal employee benefits guides published by Federal Employees News Digest.

Your question will be put into a message queue and submitted for review. We cannot guarantee that all questions will be answered, however any answered questions will appear below, and some will also be featured in our daily Federal Daily e-newsletter (Subscribe here). Federal Soup users should not submit replies to the questions posted, as we leave the replies for the moderator only. Any replies to questions other than the moderator will be deleted.

Please do not submit employee benefits questions to the webmaster or the forum moderator.

Note: FederalSoup.com has attempted to compile information that is as accurate and current as possible for federal employees. Federal policies, laws, regulations, statistics and addresses continually change. Therefore, no warranties are made as to the accuracy or completeness of the information presented in this column. If additional clarification or information is needed, it is suggested that competent and professional assistance be sought. Mr. Zurndorfer does not moderate other forums on FederalSoup and will not reply to general FederalSoup inquiries submitted in this Q&A forum.

Options
Go to last post Go to first unread
gscott  
#1 Posted : Monday, January 28, 2019 6:24:08 PM(UTC)
gscott

Rank: Member

Groups: Registered
Joined: 2/18/2008(UTC)
Posts: 17
Location: NC

Was thanked: 1 time(s) in 1 post(s)
If my Initial Enrollment Period (IEP) ends Oct 30th and I do not sign up for Medicare Part B during the IEP, if I sign up for Part B during the General Enrollment Period (GEP) beginning the following January, would I still be assessed a 10% penalty even though 12 months has not transpired between Oct 30th and the following March 30 (the end of the GEP)?

If no penalty is incurred, is it OK to sign up for Part A only during the IEP and then add Part B during the GEP?
Ed Zurndorfer  
#2 Posted : Monday, January 28, 2019 7:03:53 PM(UTC)
Ed Zurndorfer

Rank: Senior Member

Groups: Registered
Joined: 9/10/2001(UTC)
Posts: 5,631

Was thanked: 149 time(s) in 138 post(s)
No, you will be assessed a late enrollment penalty for signing up late for Medicare Part B. This is because if you miss the deadline of your initial enrollment of Oct. 31 and then you enroll in Medicare Part B during the open season enrollment period for Medicare Part B between Jan. 1 and Mar. 31, your coverage for Part B would not become effective until the following July 1. Your permanent penalty for late enrollment in Part B would be for the period Nov. 1 through June 30 (8 months). This amounts to 8/12 of 10 percent of 6.67 percent of the tier 1 Part B premium for that year.
gscott  
#3 Posted : Friday, February 01, 2019 9:56:06 AM(UTC)
gscott

Rank: Member

Groups: Registered
Joined: 2/18/2008(UTC)
Posts: 17
Location: NC

Was thanked: 1 time(s) in 1 post(s)
Thank you. That makes sense to me that they would prorate it, but do you know why Example A from the SSA regulations seems to indicate months less than 12 are dropped from the penalty calculations?

https://secure.ssa.gov/a.../poms.nsf/lnx/0601001011

It reads:

HI 01001.011 Examples of Premium Increases for Late Enrollment
A. EXAMPLE - CLAIMANT HAS NO EXCLUDABLE MONTHS

John Brown, age 65 and first eligible for Part B in 1/87, first enrolled on 2/15/89 (in the GEP beginning 1/1/89). The months considered in determining Mr. Brown's premium increase begin with 5/87 (the first month after the close of his IEP) and extend through 3/89 (see HI 01001.010 B.1.) for a total of 23 months. Since there is only one full 12-month period in 23 months, Mr. Brown's premium (beginning 7/89, the first month of SMI coverage) was 10 percent greater than if he had enrolled in his IEP.
Ed Zurndorfer  
#4 Posted : Friday, February 01, 2019 10:39:04 AM(UTC)
Ed Zurndorfer

Rank: Senior Member

Groups: Registered
Joined: 9/10/2001(UTC)
Posts: 5,631

Was thanked: 149 time(s) in 138 post(s)
No, it is not apparent why there is no penalty for late enrollment if there is less one year delayed enrollment in Medicare. Part B. The only possible reason if the delayed enrollment period was at least one year but less than two years, then the penalty would be 10 percent. If the delayed enrollment period was between two and three years, then the penalty would be 20 percent, etc. But if the delayed enrollment period is less than a year, then the penalty will be prorated.
Rss Feed  Atom Feed
Users browsing this topic
Guest
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.


This page was generated in 0.421 seconds.