Veterans and Medicare Late Penalty
Why Veterans Should Enroll in Medicare Part B at Age 65
Many veterans believe their VA healthcare benefits replace the need for Medicare. However, VA healthcare only provides coverage within the VA system and is not considered creditable coverage for Medicare Part B. Because of this, delaying Medicare Part B enrollment can result in permanent
penalties.
Is VA Healthcare Creditable Coverage for Part B?
No. VA healthcare does not count as creditable coverage for Medicare Part B. This means that when a veteran turns 65, they are expected to enroll in both Medicare Part A and Part B if they want to avoid penalties and ensure coverage outside the VA.
What Happens If a Veteran Delays Part B?
If a veteran does not enroll in Medicare Part B during their Initial Enrollment Period, and they do not have other creditable coverage such as employer-sponsored insurance, they may face a lifelong late-enrollment penalty.
How the Part B Penalty Works
The penalty is an additional 10% added to the monthly Part B premium for every full 12-month period the veteran could have had Part B but did not enroll. This penalty lasts for life.
Example:
If a veteran delays Part B for four years:
• Four 12-month periods × 10% = 40% permanent penalty
• This 40% is added to the monthly Part B premium—for life.
When Can They Enroll If They Missed the Window?
Veterans who delay Part B must wait until the General Enrollment Period (January 1 – March 31). Coverage begins July 1, and any penalties are applied immediately.
Why Enrollment Matters
Medicare provides coverage for civilian doctors, hospitals, and specialists. VA healthcare does not provide coverage outside the VA system. Having Medicare Parts A and B ensures that veterans are covered everywhere they go.
Recommendation:
Veterans should enroll in Medicare Part A and Part B when first eligible at age 65. This avoids penalties and ensures access to care both inside and outside the VA network.
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