Issue link: http://viewer.e-digitaledition.com/i/620826
$ R E T I R E M E N T P L A N N I N G C A N b e c ompl ic a t e d , whether for yourself or for fa mily members. Enrolling in Medica re Pa r t B (outpatient medica l ca re) at t he right time is impor ta nt to avoid a perma nent increase in your Medica re premium ca lled a Late Enrollment Pena lty. Employer-provided hea lth care and later norma l retirement a ges for socia l securit y ma ke the timing more confusing. Initia l Enrol lment Period (IEP): This enrol lment period applies to those who are reaching age 65 and want to enroll in Medica re Pa r t B. The IEP is a seven-month period beginning three calendar months before the month of your 65th birthday. Assuming a Jan. 15, 2016, birthday, you r covera ge ef fect ive dat es wou ld be a s fol lows: ENROLLMENT MONTH COVERAGE EFFECTIVE DATE October – December, 2015 Jan. 1, 2016 January, 2016 Feb. 1, 2016 February, 2016 April 1, 2016 March, 2016 June 1, 2016 April, 2016 July 1, 2016 If you or your spouse a re actively working a nd have employer-provided health insurance, you may choose not to enroll in Medicare Part B at age 65. If you do not enroll at this time, you can enroll in the future at your Special Enrollment Period (SEP) or your General Enrollment Period (GEP). Medicare Part B BY MARTHA BETHEA, CPA The SEP can be used any time you terminate or lose coverage in an employer-provided group health plan after age 65, and you or your spouse were actively working for the employer providing coverage. The SEP is an eight-month period for Part B and only two months for Part D. Coverage begins the month following enrollment. For those who miss the IEP and SEP, the only other enrollment period is the GEP. The GEP is available January through March 31 of each year, but coverage is not ežective until July 1. Late Enrollment Penalty (LEP). A LEP is 10 percent of the monthly premium for every 12 full months you delayed enrollment in Part B, and once levied, it lasts your lifetime. If you enroll during your IEP you may have a gap in coverage but will not incur a LEP. If you enroll during the SEP or GEP you may incur this penalty. If retire after age 65 and miss your SEP, your LEP calculation starts at your retirement date, not at the end of your eight-month SEP. Medicare Part A is widely available to most Americans without monthly premium. Those who never had 40 work credits through their own or a spouse's work record may buy into Part A through similar enrollment periods as Part B. Those with needed work credits should enroll during their IEP, whether or not they enroll in Part B. The only exception to this is for someone participating in a high-deductible health plan through his or her employer or a spouse's employer and is contributing to a hea lth savings account. Enrolling in Part A would prohibit future contributions to a health savings account. Most important is making sure you stay aware of the Medicare enrollment periods and make timely elections for coverage. Martha Bethea is a CPA and the Managing Director in charge of the Medical Practice Management Group of CBIZ/ MHM LLC in Akron, Ohio. ■ Enrolling in $ M D N E W S . C O M /// M D N E W S C L E V E L A N D /A K R O N / C A N T O N n J A N / F E B 2 016 2 9