The Centers for Medicare & Medicaid Services recently proposed a rule change that would affect the current Medicare coverage waiting periods. Currently, the rules are pretty reasonable, but these new changes could be a quality improvement for Medicare beneficiaries that fall into certain categories.
Eligibility for the Medicare Program
To be eligible for the Medicare program, you must be 65 or older. The exceptions to getting Medicare under 65 are if you are disabled for more than two years or have certain medical conditions.
Medicare health insurance is a federal government health care program to help cover our retired Americans.
Many receive Medicare A at no cost due to paying their Medicare tax for at least 10 years or 40 quarters. if you didn’t work but have a spouse that met the requirements, you’d also qualify for premium-free Part A.
Medicare Part B has a standard premium that most Medicare beneficiaries will be required to pay a part B premium.
Current Medicare Medicare Coverage Waiting Periods
When you become eligible for Medicare, you begin your Initial Enrollment Period. This enrollment period continues for 3 months after your month of eligibility, usually the month of your 65th birthday.
With the current rules, if you enroll in Medicare before the end of your birth month, your Medicare will begin the month after without any delays.
But if you miss that window and don’t enroll until the month after, you will have a month with no coverage before it begins. If you wait until the second or third month after your month of legibility, your coverage will not start for two months.
For most Americans, this isn’t an issue. Most will begin their enrollment into Medicare 3 months before their 65th birthday, ensuring the coverage will begin on the first day of their birthday month.
There are currently two other enrollment periods with regard to traditional Medicare: General Enrollment Period and the Special Enrollment Period.
The General Enrollment Period starts on January 1st and continues to March 31st Annually. When Medicare beneficiaries enroll using the GEP their coverage will start on July 1st.
The Special Enrollment period allows Medicare beneficiaries eight months to start Medicare after leaving a group health plan or creditable employer coverage. This start date is usually the month after you apply for Medicare.
Changes to Medicare Coverage Waiting Periods
These proposed changes would help Medicare enrolls by adjusting when coverage dates would begin in certain situations.
Initial Enrollment Period
Medicare beneficiaries using their Initial Enrollment Period would no longer have to wait for coverage to start if they enroll within three months after their birth month. Instead, Medicare coverage will begin the immediate month after.
General Enrollment Period
If approved, implementing these rule changes would allow enrollees to start their health coverage the month after they enroll during the GEP.
For example, since the GEP runs from January 1st to March 31st, with the new changes, you wouldn’t have to wait until July for coverage to begin.
Instead, the coverage would start at the beginning of the next month. if you enrolled in January, coverage would start on February 1st, and so on.
Special Enrollment Periods
The proposal also aims to add 5 additional Special Enrollment Periods. This would be the first time there have been changes or additions to SEPs.
SEP for Individuals Impacted by an Emergency or Disaster
This SEP would be for beneficiaries that can’t enroll in Medicare Part A, Part B, or both if they reside or reside in an area where the Federal, state, or local government declared a new emergency or disaster. You must show that you live or lived in the area affected when the declaration was enacted.
SEP for Health Plan or Employer Misrepresentation or Providing Incorrect Information
If you’re provided incorrect information by a health plan or employer you would qualify for a SEP that begins the day you notify the Social Security Administration and would continue for two months.
SEP for individuals serving as volunteers outside the United States at the time they first become eligible for Medicare
For people serving outside of the United States and covered through health insurance coverage while serving with the non-profit for at least a 12-month period.
SEP for Formerly Incarcerated Individuals
Recently incarcerated beneficiaries would gain a SEP that allows them to enroll from the day they are released and continues for six months.
SEP to Coordinate with Termination of Medicaid Coverage
This SEP would start when you notice that you’re losing Medicaid eligibility. The SEP would continue for 6 months after the termination of eligibility from Medicaid programs. Many low-income beneficiaries will benefit from this SEP.
SEP for Other Exceptional Conditions
For this SEP to apply, the beneficiary must be able to prove two conditions. First, individuals must show that reasons outside of their control caused them to miss an enrollment period. Second, the condition must be considered exceptional. The time limit of this SEP would be on a case by cases basis.
FAQs
How long do new beneficiaries currently wait to gain Medicare coverage after enrolling?
It depends on when they Enroll. If they enroll before the month of their 65th birthday, it will start on the first of that month. When you wait until after the birthday month, they will have to wait an additional month for coverage to begin. If they enroll the second or third month after, they will have a two-month wait before coverage begins.
What are special enrollment periods? (SEPs)
A Special Enrollment Period is a one-time exception to allow you to enroll in Medicare outside of a normal enrollment period. Currently, only one SEP occurs once you leave group or employer coverage. The new proposal would add five more.
What is the Medicare lock-in period?
The Medicare lock-in period refers to Medicare Advantage plans and Medicare Part D prescription drug coverage. The lock-in period runs from April 1st to October 14th.
What is initial enrollment for Part C and D?
The initial Enrollment starts three months before your Medicare eligibility dates and continues three months after. During this time you can enroll in the Medicare Part C or Part D drug plan of your choice.
How long should we wait after Medicare is active?
You should make a decision on additional coverage right away.
How long until Medicare is approved?
Medicare typically takes two to four weeks to approve your application.
What are Centers for Medicare & Medicaid Services’ proposed rules?
The proposed rule will make starting your Medicare quicker and allow more people to enroll outside of the Initial Enrollment Period and General Enrollment period.
When do the Centers for Medicare & Medicaid Services rule go into effect?
If approved the new rules would go into effect on January 1st, 2023.
Get Help Understanding Medicare Coverage Waiting Periods
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