When someone didn’t sign up for Part B when first eligible and was not covered by an employer plan, they can contact Social Security during Jan-March and request enrollment. That enrollment will not be effective until 7/1/13 and the beneficiary will have a 10% penalty assessed onto their Part B premium for each year they were not on Part B. This penalty is in perpetuity.
Because the effective date is 7/1/13, the individual can select in the 3 months prior which insurance coverage they want. If they do not submit an application by 6/30/13, they will not be able to elect to enroll onto a Medicare plan until Annual Enrollment (October 15-December 7).