What is one effect of not enrolling in Medicare on time?

The potential for increased premium costs later is a significant effect of not enrolling in Medicare on time. When individuals fail to enroll during their designated initial enrollment period, they may face a penalty when they eventually choose to sign up. Specifically, for Part B, the premium can increase by 10% for every full 12-month period that they were eligible but did not enroll. This penalty can last for as long as the individual is enrolled in Medicare, leading to higher out-of-pocket costs over time.

Additionally, not enrolling on time can disrupt coverage, forcing individuals to navigate complex enrollment processes later, which can contribute to increased expenses. These penalties are designed to encourage timely enrollment, ensuring that beneficiaries maintain continuous access to necessary medical care without incurring added financial burdens.