|  | Healthcare Industry | Health Insurance

Can I Decline Medicare Coverage?

Medicare coverage is divided mainly into four parts. Generally, Medicare lets you choose whether to enroll in all the coverage it offers you or whether to enroll in the specific coverage you need. You qualify to enroll in Medicare Part A for free if you or your spouse have paid Medicare tax.

  1. Medicare Part A

    • Generally, you cannot decline Medicare Part A coverage (hospital insurance). Part A enrollment is free and not voluntary. The only exception is if you do not qualify to receive Medicare Part A for free. This happens when neither you nor your spouse have worked and paid Medicare tax. In this case, you are allowed to purchase Medicare Part A when you turn 65, but you are not required to do so, and you can decline paying for it and having Part A coverage. If you qualify for premium-free part A and you or your spouse are already receiving retirement benefits, you are automatically enrolled in Part A when you are 65, and you cannot drop your coverage.

    Medicare Part B

    • If you are automatically enrolled in Medicare Part A as explained above, you are also enrolled in Medicare Part B (medical insurance). However, enrollment in Part B is voluntary and coverage is not free. You are required to pay monthly premiums for Part B coverage, which means that you are not required to accept it and you can decline its coverage. If you do so, you can also enroll later if you think you need it, but doing so will probably mean that you need to pay a late penalty.

    Medicare Part C

    • As with Part B, Medicare Part C enrollment is voluntary, and coverage is not free. However, you are not automatically enrolled in Part C, which means that enrollment is completely your choice. You do not pay late-enrollment penalties for Part C. You can decline Part C coverage because its plans are only a complement to Medicare Part A and Part B. Medicare gives you the option to add Medigap to your Part A and B coverage, instead of a Part C plan. You can choose not to enroll in Part C, and you can also enroll, drop coverage and enroll again later. (You must do so during the enrollment periods.)

    Medicare Part D

    • You can also decline Medicare Part D coverage (prescription drug plans). Medicare Part D enrollment is voluntary and not premium-free. However, unlike Part C, your choice of declining Part D must be based on whether you have other accredited prescription drug coverage. You are allowed to decline Part D coverage. However, if you decide to enroll later, a late penalty applies to each monthly premium you pay for Part D coverage if you did not have other coverage while you were not enrolled.

Health Insurance - Related Articles