Part B Medicare- Deductibles, Late Enrollment Penalties & Tips To Avoid Penalties  

If you skip enrolling for Part B Medicare, prepare to pay a 10 percent extra penalty in the standard Part B premium every 12 months when you had a chance to register.

Don’t let this happen to you!

Normally, paying extra out of your savings is a lot to take, especially when you’re near retirement. Paying a penalty sounds alarming when you have been working your entire life and saving up for yourself. Unfortunately, you feel helpless because you’re not informed on how to avoid the penalties. 

Therefore, read this article and educate yourself, and take a complete guide from the team at STL Medicare Benefits. Our job is to guide you, educate you, and find useful healthcare programs that match your healthcare needs.  

We know what you’re thinking, ‘What does it take to avoid the penalties’?  

Let’s explore…  

 An Introduction To Part B Medicare

Medicare Part B is one of the original Medicare programs that include all necessary medical treatments to cover your healthcare needs. 

What does Medicare Part B cover?

This program usually adds preventive services, outpatient care, durable equipment, and ambulance facilities. Moreover, it also includes part-time home services like rehabilitative services that may supplement physical therapy. 

Meanwhile, other preventive services are covered under the “Welcome to Medicare” preventive visit. Under preventive visits, patients can get cardiovascular screenings, diabetes screenings, cancer screenings, flu, and hepatitis B shots. The list is given in the Medicare handbook to understand what’s covered in the first 12th period.  

Call us for more details: (314) 203-9246. 

Part B Medicare Coverage and Deductibles

Enrollment. Coverage. Deductibles.  

These concerns bring clients to our door when they’re confused about what healthcare plan will suit them the best. 

The good news? 

STL Medicare Benefits enlightens clients about Medicare healthcare programs. Furthermore, our team backs you up by answering health-related queries. 

Why should you trust us? 

We hold years of experience that have made us trustworthy Medicare experts for our clients. 

Moving to the main subject, below, we will be discussing 2022 deductibles and premiums included in Part B Medicare: 

Medicare Part B Premium & Deductibles For 2022

According to the Social Security Act, each year, we observe changes in the premiums, deductibles, and coinsurance rates. Monthly premiums of Part B Medicare depend on the percentage of the beneficiary’s income. The total monthly premium for 2022 is $170.10. Furthermore, in 2022, the annual deductible is $233 for all beneficiaries.  

Note:  Part B premiums vary on the basis of the low and high income of beneficiaries. The annual premium set by Medicare remains the same for the lower incomes. However, employees with higher incomes will have different premiums to pay each year. 

Comparison Between Deductibles & Coverages Of 2021 to 2022

Each year, premiums and deductibles increase based on a specific percentage. Last year, in 2021, the standard monthly premium set for beneficiaries was $148.50. However, in 2022, the final premium set for beneficiaries is $170.10, which means an increase of almost $21.60 in 2022. Similarly, the annual deductible set in 2021 was $203 which reaches $233 in 2022, increasing $30 for the beneficiaries.  

All in all, an increase in deductibles and coverages is expected every year.   Want to know why it happens? We have picked four effective reasons that will help you understand deductibles.

Reasons For The Increase In Deductibles & Coverages

The rising prices across the healthcare system depend on the medical demands of the patients that hike every year. 

Another main significant reason for the increase in deductibles is congressional actions. The objective was to lower the premiums of Part B in 2021. However, congressional actions didn’t bring any significant difference. On the contrary, $3.00 is raised per beneficiary each month, which will be further continued into 2025. 

Consumption of Alzheimer’s drugs by Medicare patients is excessively increasing, and it is considered the most expensive drug. In 2022, the chances of consumption may increase further. Therefore, it’s expected that it can be a reason why a higher percentage of deductibles will be added in the upcoming years. 

Penalty For Not Enrolling For Part B Medicare

According to the reports, each year, enrollees unwillingly pay penalties if they miss the opportunity to get enrolled in the first place. Penalty for the Medicare Program adds up to 10% to your standard premium of Part B for every twelve-month period that you were eligible for Part B, but not yet enrolled. 

Meanwhile, you also don’t receive creditable coverage when being charged during each 12-month period. However, it’s a relief for the higher income holders to pay the same penalty set for the basic premium of the Part B program. It’s not calculated as per their income rate. 

 Four Common Situations To Avoid That Make Part B Medicare Penalty Likely

Here are some common examples to consider if you want to avoid penalties for Part B Medicare;   

• A person retiring at 65 and continuing retiree coverage till 70, decides to get himself enrolled in the Medicare Part B program.   
• Waiting for eight months to get enrolled in the Part B program after losing employer coverage.   
• Missing insurance coverage, then waiting till 67 to register for the Original Medicare Program.    
• Due to VA benefits, you delay Medicare Part B coverage.   

How To Get Rid Of Part B Medicare Penalties?

The questions that our clients usually ask us are: “How do I get rid of the Part B Medicare penalty?” 

Enrolling in the Medicare Program at the right time is essential. Late enrollment penalties for Part B are permanent. 

Once you turn 65 years of age, we recommend enrolling in Part B to avoid late enrollment penalties if you do not have any other creditable coverage. This way you can skip all unnecessary penalties associated with healthcare programs. 

What Does Special Enrollment Period Offer?

The Special Enrollment Period is basically a problem-solving opportunity for the ones who miss out on the Initial Enrollment Period of Part B Medicare due to having creditable coverage. If you work past 65 for an employer that provides you creditable coverage and then you decide to retire; this will make you eligible for a special election period that lasts 8 months. If you enroll in Part B during this time you will no longer be asked to pay additional late enrollment penalties.   

What Happens When You’re Eligible For Medicare Saving Program?

Not every beneficiary can apply for the Medicare Saving Program. Additionally, it’s essential to meet specific income criteria before enrolling yourself in this program. However, once you register and become eligible, they eliminate all your penalties, even if you have an obligation to pay the penalty in the coming months. 

What Happens When You Apply For An Appeal To Reconsider Part B Medicare Penalty?

We hear you; no one likes to pay extra premiums. If you feel the Medicare Part B penalty should not be applied in your case, the better choice is to apply for an appeal. In other words, you’ll be asked to review your penalty through the proper process of documentation.

Medicare has introduced a reconsideration penalty form which you can complete and submit to file your appeal.  

Unfortunately, you have to pay till the process of reconsideration starts; in fact, there is no way out. Furthermore, there is no specific timeline for processing. This process may take a while, but sometimes you’re lucky to get through the process before time.  

How To Avoid Part B Medicare Penalties With STL Medicare Benefits?

Honestly, in the past years, we have heard concerns regarding paying extra penalties. It can be hard luck on your luck if you don’t plan things out for your future.  

To improve your experience, STL Medicare Benefits can step in!   

Whether you need to opt for Medicare Advantage Plan or for the Medicare Supplement plan, our consultancy service will always cater to your healthcare needs.  

STL Medicare Benefits is your trusted Medicare insurance agent. You can trust and ask to manage your medical profiles.  

Educating Yourself On Coverage Plans

To identify what’s best for your future, we like to educate our clients when they need help, send them notifications about the updated schedules, and walk you through the categories that usually Original Medicare Program offers. We believe it’s not a one-time job, it’s something that we implicate gradually to benefit our clients.   

Do you know what we call it?   

A bond of trust!   

If you’re looking for thorough Medicare information, we can help.   

How do we start?   

You seek competitive insurance quotes; we help you locate them and give you the best options with more than 80+ agencies. Are you looking for a quote that matches your healthcare needs? Find eligible Medicare program carriers with STL Medicare Benefits.  

Wrap Up

To avoid unnecessary penalties, it’s best to enroll yourself in the Initial Enrollment Program. If you forget to enroll yourself in the program, you have to pay a 10% extra premium from your standard premium of Part B Medicare. However, there are no obvious methods to avoid penalties but you can get guidance from professionals at STL Medicare Benefits. Share your feedback if you like this post, and let’s know what we should cover in the next topic.   

For further information, visit our site; STL Medicare Benefits