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NEW YORK (MONEY Magazine) -
Q. This is too confusing. Can I just sign up later?
Sure. But the cost of acting later rather than sooner is steep.
If you don't have other coverage deemed creditable and you wait until after May 15 to sign up, Medicare will add at least 1 percent to your premium for every month you delay. So if you wait a year, your premium will be 12 percent higher than if you had signed up on time. Worse, the penalty is permanent.
"If you're on the fence about signing up, consider one of the cheaper plans," advises Dee Mahan, deputy director for health policy for Families USA, a consumer advocacy group.
"It might not be a great plan, and you'll probably be stuck with it until the next open enrollment at the end of next year, but at least you won't get hit with the late penalty."
How do I choose the right plan? >>
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