I received a call yesterday from a new client who is newly eligible for Medicare. Someone told her that she could drop her Part B and stay on the Company’s cobra plan without a penalty and then re-sign onto Medicare Part B. Luckily for her, she contacted me before terminating her Part B coverage. As she found out when I told her to reconfirm with Social Security, had she dropped her Part B but was not employed and wanted in a few months to reactivate her Part B, she would have been told by Social Security that she would have to wait and call back between next January-March to request the reactivation of Part B as of July 1, 2013. In addition, she WOULD HAVE TO PAY A 10% PENALTY on her Part B premium in perpetuity.
Make sure you check out the rules/requirements before making a decision regarding enrollment onto Medicare.