What are the Pros & Cons of not enrolling in
Part B Medicare,
when one is living outside of the USA and covered under
the National Health Insurance Program of another country?
Since Medicare benefits are available only in the United States, it may not be to your advantage to pay the premium for Part B medical insurance if you will be out of the United States for a long period of time. But be aware that when you return and sign up for Part B, your premium will be 10% higher for each 12-month period you could have been enrolled in Part B, but were not.
If you return to the United States, you must re-enroll in Part B, but you may only do so from January through March each year, your benefits will not begin until July, (Check out the Petersen Bridge Plan if you need coverage while waiting for Part B to start) and you may have to pay a premium penalty. CA Health Care Advocates HICAP
See also our page on Part B late enrollment penalty
So, how do I figure out the penalty vs paying the premium, which is better?
Your Initial Enrollment Period ended September 30, 2009. You waited to sign up for Part B until the General Enrollment Period in March 2012. Your Part B premium penalty is 20%. (While you waited a total of 30 months to sign up, this included only 2 full 12-month periods.) You’ll have to pay this penalty for as long as you have Part B. Enrolling in Medicare # 11036 *
Jeremy turned 65 in 2011. He did not sign up for Medicare Part B until 2017.
His penalty is:
10% x 6 years = 60 His penalty is thus 60% on top of the premium 0.6 X $134 (2017 Part B premium) = $80.40 penalty $80.40 + $134= $214.4 Jeremy will pay $214.4 on a monthly basis as his penalty Part B premium. United Medicare Advisors So, how does the penalty compare to if he had paid the $134 premium for 6 years?
10 years to even out
Here’s where a web site visitor did a spread sheet.
Spreadsheets are beyond my pay grade.
Enrolling for Part A & B #11036 Page 28 Living outside USA Part B…
Medicare Enrolling in Parts A & B # 11036
Deciding to Sign up for Part B Doctor & Out of Hospital
Part A (Hospital Insurance)
Part B (Medical Insurance)
Can I get Part B if I don’t have Part A?
How do I know if I have Part A or Part B?
Part C (also known as Medicare Advantage)
Part D (prescription drug coverage)
When can I sign up?
Getting Part A and Part B automatically
Signing up for Part A and Part B
Turning 65 and you or your spouse is still working
Medicare and End-Stage Renal Disease (ESRD)
Can I still get Medicare at 65?
I have Health Insurance Marketplace coverage
I have coverage through a health savings account (HSA)
Living outside the U. S.