Can someone explain the up coming Medicare penalty.

[sarcasmo]

I still don't understand the penalty. Will it be billed to the elderly in the mail? Will those who didn't fill have to pay the penalty first before they can use the Medicare? I deal with a lot of elderly and have been trying to explain to them that they need to pick a plan so they don't receive the penalty. The only problem is I don't know how the penalty is going to be assessed. I am pretty sure the time table for this fine program from our Dictator is sometime in May. The elderly are going to blow a pacemaker when they realize what is going on.

[Minnesota Libra]

1. Basically, it goes like this...........

.....if you qualify for Medicare and do not pick a plan to join by a certain date YOU WILL FOR THE REST OF YOU LIFE be charged a 1% penalty each and every month on everything you buy use under Medicare.

So let's say you can't decide on the right Medicare plan for you until after the cut off date. From that point on if you buy anything for $10 you ill be charged an extra $1 every time.

So if you can make sure you pick a plan quickly.

[TAPat]

3. I'm a bit confused

not to be nit-picky but 1% of $10 is 10 cents -
so is the penalty 1% or 10%?
Thanks :)

[Minnesota Libra]

4. Sorry - I've had only one cup of coffee here - give me an hour........

....and ask me that question again. :rofl: Seriously, you are right, sorry. But the basic concept still stands - 1% penalty each purchase.

[TAPat]

6. Thanks - I'm only half way through

my cup and frankly I am amazed that I could even do that math!!!! :)

[Tracer]

7. That is incorrect.

The penalty is NOT on purchases, but on the cost of insurance.

For instance, if your insurance plan costs $30 per month, the penalty for a 6-month delay in signing up would be 1% x 6 months ($30 x 1% = .30 x 6 = $1.80). And that $1.80 surcharge is permanent.

[0007]

8. Now I know why they made you boss!

[sarcasmo]

2. I found a good link to that and it's #6 below, Thanks for the info.

I will pass it on to all my Senior cab riders.

http://www.suddenlysenior.com/medicareclueless.html

[MADem]

5. Are you referring to the Part D business?

TRICARE for Life personnel are excepted, FWIW...they don't have to pick, because they are still covered under TFL.

[Habibi]

9. I don't understand the penalty at all!`

I thought this was supposed to be voluntary??

[sarcasmo]

10. Exactly, by the numerous answers here not many understand the penalty.