Medicare: Lower Late Enrollment Penalties and Protection for Veterans' Coverage.
This bill reduces financial penalties for individuals who enroll late in Medicare Part B. The maximum penalty will be adjusted from 10% to 15% of the monthly premium, but it will only be applied for a period equal to twice the duration of the enrollment gap, rather than permanently. Crucially, periods covered by COBRA, retiree health plans, or VA coverage will no longer count as 'uninsured time' when calculating the late enrollment penalty, offering significant financial relief to many citizens.
Key points
Reduced Late Enrollment Penalty for Medicare Part B: The penalty increases from 10% to 15% of the monthly premium, but it is applied only for a period equal to twice the number of months missed, instead of being permanent.
Exclusion of COBRA, Retiree, and VA Coverage: Time spent under COBRA, retiree health plans, or VA coverage will not be counted when determining the late enrollment penalty, protecting veterans and former employees.
Special Enrollment Period: A new special enrollment period is established for individuals whose COBRA or retiree coverage terminates, ensuring a smooth transition to Medicare without penalty risk.
Financial Benefit: Citizens who previously faced lifelong penalties due to coverage gaps will see those penalties expire after a defined period.
Introduced
Citizen Poll