What Is the Penalty for Canceling Medicare Part B?

Cancelling Medicare Part B is a relatively simple process. Still, it’s important to be aware of the risks involved – including coverage gaps and penalties if you later wish to re-enroll.

The late enrollment penalty for Medicare Part B is 10% of the standard Part B monthly premium for each entire 12-month period that you missed. This penalty will be added to your monthly premium as long as you have Medicare Part B coverage.

Example:

*The standard Part B premium can vary annually based on projected healthcare costs.

What Are the Cons of Cancelling Medicare Part B?

The late enrollment penalty is the most significant risk, but other factors should be considered when before Medicare Part B.

By canceling Part B, individuals are left to pay out-of-pocket for services that Medicare typically pays for, such as:

These healthcare costs can be financially draining, especially with unexpected medical issues or chronic conditions.

Can You Re-Enroll in Part B After Canceling?

If you have previously enrolled in Medicare Part B and then canceled it, you can re-enroll during the General Enrollment Period (GEP), which runs from January 1st to March 31st each year.

However, if you are eligible, you might be able to enroll in Medicare Part B later during a Special Enrollment Period (SEP), which allows penalty-free enrollment outside the General Enrollment Period.

Bottom Line

Maintaining your Part B coverage continuously is important to avoid the Part B penalty. However, if you need to cancel Part B, ensure you understand the potential consequences and have a plan to fill any health coverage gaps.

Remember that the penalty increases over time, meaning the longer you go without coverage, the higher the penalty will be.

Sources: SSA | Medicare.gov | CMS.gov

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