My Medicare Part B Was Cancelled for Non-Payment

If your Medicare Part B was cancelled because premiums were not paid, do not assume the answer is simply “wait until next year.” First, check whether Medicare will still accept payment or whether the coverage has already terminated.

The Medicare Premium Bill, Form CMS-500, explains that a “Coverage Termination Date” appears only when the payment is 90 days past due. If the full “Total Amount Due” is not paid by the “Due In Full By” date, Medicare coverage can be terminated. Medicare.gov – Understanding Your Medicare Premium Bill CMS-500

First: check your Medicare account and bill

• Log in to your Medicare online account.
• Look for the most recent Medicare Premium Bill, Form CMS-500.
• Check whether the bill shows a “Past Premium Due” notice or an actual “Coverage Termination Date.”
• Check whether Medicare still offers an online payment option.
• Keep a copy of every notice and every payment confirmation.

You can also use Medicare’s official payment page to review payment options, including online payment, Medicare Easy Pay, bank bill pay, credit/debit card, or mailing a check. Medicare.gov – How to Pay Medicare Premiums

If Medicare will still accept payment

If the bill still allows payment, pay the full amount due as quickly as possible and save proof. Medicare says payment must be received by the due date shown on the bill. Mailing a check close to the deadline may not be good enough if Medicare does not receive it in time. Medicare.gov – Pay Premiums

If Part B has already been terminated

If Medicare no longer accepts payment and Part B has already ended, the next question is whether you qualify for a Medicare Part B Special Enrollment Period, or whether you must use the Medicare Part B General Enrollment Period.

The General Enrollment Period runs January 1 through March 31. For GEP enrollments on or after January 1, 2023, Part B coverage generally starts the first day of the month after you sign up. Medicare.gov – Sign Up for Medicare Part B

Will there be a Part B penalty?

There may be a late enrollment penalty if you did not have Part B when you were supposed to have it. Medicare says the Part B penalty is generally 10% for each full 12-month period you could have had Part B but did not sign up, unless you qualify for an exception. Medicare.gov – Avoid Late Enrollment Penalties

What if you had employer coverage?

If you had active employer group health coverage vs Medicare through your own job or your spouse’s job, review the Medicare Part B Special Enrollment Period rules before assuming you must use the GEP.

Be careful with COBRA or Cal-COBRA. COBRA may continue your employer plan, but it is not the same as current active employment coverage for Medicare Part B timing.

Can a Medicare Savings Program help?

If the reason Part B was cancelled is that the premium was hard to pay, review the Medicare Savings Program / Medi-Cal Part B premium help page. Medicare Savings Programs may help pay the Part B premium for people who qualify. Medicare.gov – Medicare Savings Programs

What should you do next?

• Log in to your Medicare online account and see whether Medicare still shows a payment option.
• Look at a sample CMS-500 Medicare Premium Bill so you know where to look for the amount due and possible termination information.
• If Medicare still accepts payment, pay the full amount due and save the confirmation.
• If Part B is already terminated, review the Medicare Part B Special Enrollment Period and Medicare Part B General Enrollment Period rules.
• If the Part B premium is hard to pay, review Medicare Savings Program help / Medi-Cal paying the Part B premium.
• Email Steve at [email protected] before making a rushed decision that could create a coverage gap or penalty.

FAQs

Can I just buy a Medicare Advantage plan instead?
Usually no. A person generally needs both Medicare Part A and Part B to enroll in, or stay enrolled in, a Medicare Advantage plan. CMS model Medicare Advantage notices also state that loss of Part A or Part B can end Medicare Advantage membership. CMS – Medicare Advantage Enrollment and Disenrollment Notices

Can I buy a Medigap plan without Part B?
Usually, solve the Part B problem first. A Medigap / Medicare Supplement policy is designed to work with Original Medicare, and Part B is the part of Medicare that covers doctor and outpatient services.

Can I get Covered California instead?
Maybe, but do not guess. Covered California tax credit eligibility at age 65 depends heavily on whether you are eligible for premium-free Medicare Part A. Review our page on Age 65 and Covered California Tax Credits before making any coverage decision.

Should I call Social Security?
Maybe, but check your Medicare account and bill first. If the online information does not show whether payment is still accepted, or if you need to re-enroll in Part B, then Social Security may need to be involved.

Bottom line: If Part B was cancelled for non-payment, first find out whether Medicare will still take the money. If not, the issue becomes SEP, GEP, penalty, and whether Medi-Cal or a Medicare Savings Program can help pay the premium going forward.

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General Enrollment Period
Special Enrollment Period