INSURANCE

Q:Since I don’t take any prescription medications now, can I skip getting Medicare’s prescription coverage and add it if I need it in the future?

A:Once you turn 65 and sign up for Medicare, you become eligible to purchase Medicare Part D coverage for prescription drugs. You have the option to delay enrolling in Medicare prescription coverage. However, there may be some consequences to this decision.

If you put off enrolling in a Medicare Part D plan for 63 or more consecutive days after your initial enrollment period ends and you do not have other creditable coverage you may be subject to a late-enrollment penalty if you decide to enroll at a later date. The cost of the late enrollment penalty depends on how long you go without Part D or other creditable prescription drug coverage. Medicare calculates the penalty by multiplying 1% of the “national base beneficiary premium” ($32.74 in 2020) times the number of full, uncovered months you did not have Part D or creditable coverage. The monthly premium is rounded to the nearest $.10 and added to your monthly Part D premium. The national base beneficiary premium may change each year, so your penalty amount may also change each year.

For example, if you had gone 14 months without this coverage and apply for Part D coverage in 2020, the Medicare Part D penalty will be 14%. Fourteen (14) % times $32.74 equals $4.5836. This rounds to $4.60 per month, which would be added to your monthly Part D Prescription Drug Plan premium.

Some common examples of creditable coverage include but are not limited to the following:

• Coverage you have through your employer or union, your spouse’s employer or retirement plan. • Prescription coverage through a Medicare Advantage Plan (Part C) • Coverage through the Department of Veterans Affairs (VA), TRICARE and Indian Health Service.

A plan must tell you each year whether or not their prescription drug coverage is creditable, meaning it covers at least as much, on average, as Medicare’s standard prescription drug coverage. It is a good idea to save this information just in case you are ever asked to prove you had creditable coverage.

If you have questions concerning Health Insurance including Individual, Group, Medicare Advantage Plans or Medicare Supplements, and Prescription coverage, call me at 440255-5700 or email me at Lmutsko@ mutskoinsurance.com. I look forward to helping you.