Question: Is there a Penalty for not Signing up for Medicare?
Most people enroll in Part A and Part B of Medicare when they become Medicare eligible at age 65. However, there are some that put off Medicare enrollment because they can be covered through their employer-sponsored plan.
Sometimes Medicare will enforce a financial penalty for not enrolling in Medicare A and B for those that are eligible. This typically happens when an employee is working for an employer that has less than 20 employees. Because of Medicare Part A and Part B would be primary for that person, and the employer plan would be secondary, Medicare would enforce a financial penalty for late enrollment into Part B of Medicare.
If you’re working for an employer group that has more than 20 employees, typically there isn’t a penalty because the employer-sponsored plan is primary because the employer-sponsored plan has more than 20 employees.