I received a call today from a woman who is under age 65 but several years ago became eligible for Medicare Part A and Part B because she had been on Social Security Disability for 24 months. At the time of her eligibility she declined Part B because she was covered by her husband’s employer insurance. Her question was whether she would have a penalty charge attached to her Part B when she goes to re-activate Part B.
Because she is on her husband’s employer plan, whether he chooses to retire and/or the cost of his insurance becomes too expensive and she chooses to leave the employer plan, she will not have penalty charge attached to her Part B. She will have to obtain a form from Social Security that the employer will need to sign and verify loss of the employer insurance coverage as of the last day of a month so that her Part B can be made effective the 1st of the following month. This will entitle her to a special election period when she can select either a medicare supplement and stand-alone drug plan or a Medicare Advantage plan with drug coverage.