New Medicare Rule Could Force Seniors to Switch Health Insurance Plans

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New Medicare Rule Could Force Seniors to Switch Health Insurance Plans
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A new update to Medicare coverage under the Inflation Reduction Act means seniors who delay joining Medicare could face additional hurdles.

A new Medicare rule could wind up forcing seniors to switch health insurance plans or face a significant penalty.Many seniors who continue to work past 65 are still on their employer's health plan instead of the government-run Medicare.However, a new update to Medicare coverage under the Inflation Reduction Act means seniors who delay joining Medicare could face additional hurdles when it comes to drug coverage.

The late enrollment penalty goes into effect every month you are enrolled in Medicare if, after the initial enrollment period, you had 63 or more days without Medicare drug coverage or an employer-provided creditable drug coverage plan.The exact penalty is calculated by multiplying 1 percent of the national base beneficiary premium, which was $34.70 for 2024, times the number of how many months you went without Part D or otherwise creditable coverage.

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