Part B Premium

There is a monthly premium associated with Medicare Part B. The amount of your premium is dependent upon your yearly income as reported on your tax returns from the preceding 2 years. For most people the 2025 monthly Part B premium is $185.00. However, if you file an individual tax return and your income is greater than $106,000 or if you file a joint tax return and your income is greater than $212,000, you will have an Income Related Monthly Adjustment Amount (IRMAA). To view the Part B premium table, please go to http://medicareeducator.com/part-b/

Part B Late Enrollment Penalty

You are not required to sign up for Part B; however, if you later wish to, you may have to pay a penalty for the rest of your life. Should you have a penalty, the Social Security office will calculate your penalty, if any, accordingly. The penalty is 10% for each full 12 months in which you could have had Part B but chose not to take it. The penalty is calculated by multiplying the current Part B premium ($185.00 in 2025) by 10% and then by the number of full years in which you could have had coverage but did not take it. Example: If the Part B premium in 2025 is $185.00 and you delayed enrollment for 3 full years, your penalty is $55.50 per month ($185.00 x 10%) x 3 years and is rounded either up or down to the nearest 10. This amount is now added to your current Part B premium, making your total $240.50 per month. The criteria for not having to pay a penalty usually consists of a Special Enrollment Period such as coming off a group or union health plan if you are still working. 

HSA

If you have a Health Savings Account (HSA), you should stop contributions into your HSA 6 months prior to enrolling in Medicare in order to avoid a tax penalty, as making contributions while enrolled in Medicare is not allowed. Keep in mind if you enroll in Medicare after you are age 65, the effective date of Medicare will be 6 months retroactive back but not earlier than the month you turn 65.

When to Enroll

There are specific times when you can sign up for Medicare Part B. Generally speaking, you should sign up for Medicare Part B when you first become eligible because of the risks and penalties of signing up later, such as a gap in coverage or having to pay a late enrollment penalty. However, in some cases, it makes sense to sign up later. For instance, when working past age 65 and staying on your group or union health plan.

Initial Enrollment Period: This is the first time you can enroll and consists of a 7-month window that begins 3 months before your 65th birthday, the month of your 65th birthday and 3 months after your 65th birthday. If you enroll during the first 3 months, coverage becomes effective the first day of the month you turn 65. If you enroll during the month you turn 65, or during the 3 months after you turn 65, coverage becomes effective the first of the following month. If you enroll during this period, you do not have to pay a late enrollment penalty.

If you missed your Initial Enrollment Period, you can only sign up for Medicare Part B during the General Enrollment Period or a Special Enrollment Period. 

General Enrollment Period:This period runs from January 1 to March 31 with coverage being effective the first of the following month that you sign up.  Depending on the length of time that has gone by since your Initial Enrollment Period, you may or may not have to pay a late enrollment penalty.

Special Enrollment Period: If you did not sign up during your Initial Enrollment Period, there are certain situations where you can sign up for Medicare Part B without paying a late enrollment penalty. This is called a Special Enrollment Period and is only available for a limited time. Coverage typically becomes effective the first of the following month that you enroll. 

Examples of Medicare Part B Special Enrollment Periods consist of but are not limited to: