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Medicare Penalty Reduction - H.R.1177

When Medicare began in 1966, Congress wanted everyone eligible to sign
up for Part B so the premium income would help pay for the program. A 
penalty of 10 percent per year was mandated for late filing to encourage
people to buy Part B coverage at age 65. The monthly premium in 1966 
was $3, and the penalty for filing one year late then was only 30 cents per
month for twelve months.
                      
Currently, the penalty for delaying for one year is $4.38 per month,
almost 15 times the original penalty. If a person files 10 years late,
the penalty is 100 percent, or $43.80 per month, for a total monthly
premium of $87.60. This is a harsh penalty due to the tremendous in-
crease in the cost of living since 1966.

As in years past, Representative Barney Frank has introduced a bill to
limit the penalty for late enrollment to just 10 percent per month for
twice the period of no enrollment.  Thus, if a person delayed enrolling
in Medicare Part B three years, the penalty would be $4.38 per month for
six years.  In the 107th Congress, the bill is H.R.1177.


Click on Co-sponsors of H.R.1177 to determine if your Representative has
co-sponsored it.  Click on Co-sponsors of H.R.914 to determine if he/she
co-sponsored it in the previous Congress.




Sample Medicare Penalty Letter:
Medicare Penalty Legislative History:
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