Medicare has different enrollment periods, each having a specific purpose based on when you are enrolling. Depending on your current circumstances, one or more of these enrollment periods could be beneficial to you and save you from late-enrollment penalties.
Initial Enrollment period
The first time you are allowed to enroll in Medicare is known as the Initial Enrollment Period (IEP). During this period, you are given seven months to enroll in the different parts of Medicare. The seven-month period starts three months before you turn 65, includes your birth month, and ends three months after your 65th birthday.
For example:
- If you turn 65 in May, your IEP will start on February 1 and end on August 31.
- If you miss your IEP, you will still be allowed to enroll. However, you may be subjected to late-enrollment penalties.
Special Enrollment period
Special Enrollment Periods (SEP) are open only for specific and unavoidable circumstances. These circumstances can include:
- Moving out of your plan’s service area
- Losing your current plan’s coverage, or your coverage with Medicare has changed
- Applying for different coverage now, but applying for Medicare later when you no longer receive that coverage
Suppose you are still working at 65 and receiving health coverage through your employer. You may qualify for a Special Enrollment Period, provided your employer has at least 20 employees.
You will not receive a late penalty if you enroll for Medicare during this period.
General Enrollment Period
If you missed your IEP or SEP, you can enroll for Medicare during the General Enrollment Period (GEP), which lasts from January 1 to March 31. If you opt for this option, your coverage will start on July 1, but be aware that you may have to pay late-enrollment penalties since you’ll be enrolling past your IEP and SEP.
Some of the penalties can also be permanent and will last for as long as you’re enrolled in Medicare. This is why all Medicare beneficiaries are highly encouraged to begin enrollment before it gets to this point.
Open Enrollment Period
The Open Enrollment Period (OEP), also known as the Annual Election Period (AEP), is available every year from October 15 to December 7. It allows individuals to make changes to their current Medicare plans, such as switching from Original Medicare to a Medicare Advantage Plan, or vice versa. You can also determine if changes need to be made to your prescription drug plan.
However, if you want to switch from Original Medicare to a Medicare Advantage Plan, you will need to meet a few requirements before doing so:
- You have to be enrolled in Original Medicare
- You have to live within the plan’s service area
- You can’t have End-Stage Renal Disease (ESRD)
Medicare Advantage Open Enrollment Period
The Medicare Advantage Open Enrollment Period (MA OEP) presents the opportunity to change your advantage plan between January 1 and March 31. You can only make changes once during this period, so make sure you familiarize yourself with all the available coverage options.
During this period, you can either switch back to Original Medicare and choose a new prescription drug plan, or switch to a different Medicare Advantage Plan.
Medigap Open Enrollment
You can buy a Medigap policy within the first six months of Medigap Open Enrollment. This period starts when you are 65 or older and are enrolled in Medicare Part B. You will have six months to enroll in a Medigap plan and can’t be turned down for medical reasons.