What is Medicare's GEP?
Medicare's general enrollment period or 'GEP' runs from January 1st through March 31st of every year, and it is the chance for individuals to enroll in Medicare Parts A & B.
Who is eligible to enroll during the GEP?
For Part A, if you are required to pay a premium due to not paying your Medicare tax while working for forty calendar quarters; you can use the GEP to enroll. If you are like most people and do not have a Part A premium, you can enroll in this part at anytime. Eligible individuals who did not enroll in Part B during their initial coverage election period or used a special election to enroll, these folks can enroll in Part B during the annual GEP.
Is there a penalty for A & or B enrollment during the GEP?
Beneficiaries who are eligible to enroll, went more than one year without Parts A & B, and are required to pay a premium, may incur a penalty for late enrollment when using the GEP. Penalties for A & B late enrollment differ and are described below.
Part A penalties only apply to individuals who are not eligible for premium-free Part A coverage. The penalty is 10% of the premium cost tacked onto the premium, and will last twice the number of years the enrollee delayed part A enrollment.
Part B penalties add 10% of the premium tacked onto the premium as well for every year they delay Part B enrollment. This penalty unlike Part A penalties lasts for as long as you retain Part B coverage, it does not fall off.
Key facts to note:
Those who delayed Part A & or B enrollment due to qualifying employer coverage for them or through a spouse's employment, are not required to pay a late enrollment penalty. There are also no late enrollment penalties for those that qualify for a Medicare Savings Program (MSP). It is also worthy to note that after enrollment through the GEP, A & or B coverage becomes effective the first of the following month after enrolling.
