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Mainstreet Financial Education · Medicare Enrollment

The five worst moves in your first year on Medicare.

Medicare's first-year decisions are the ones that follow you. Avoiding these five keeps the avoidable penalties off your premium for good.

The five worst first-year moves

The best windows in your first year open only once, and the late penalties never expire.

1

Missing your Initial Enrollment Period

This is the seven-month window around your 65th birthday. Skip Part B without active employer coverage and you owe a 10% penalty for every year you wait, added to your premium for life.

2

Assuming Medicare signs you up for you

You are enrolled automatically only if you already collect Social Security. Everyone else has to sign up on their own, on time.

3

Skipping Part D because you take no drugs

With no creditable drug coverage, a late-enrollment penalty accrues at roughly 1% of the national base premium for every month you wait, and it is added for as long as you have Medicare.

4

Choosing a plan on the premium alone

A $0 premium can hide a narrow network, prior-authorization hurdles, and a high out-of-pocket limit. Check the formulary and confirm your doctors first.

5

Assuming you can get Medigap later

Your guaranteed Medigap window is six months at 65, plus a 12-month trial right if you start on Medicare Advantage. After that, most states let an insurer turn you down based on your health.

The penalties are for life

Late penalties do not expire. The Part B and Part D late-enrollment penalties are not one-time fees. Both ride on your premium for as long as you have Medicare, which is why the first-year windows matter so much.

Teaching, never a sales pitch

The first-year windows only open once.

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