What Happens If You Delay Medicare Enrollment?

Enrolling in Medicare isn’t always as simple as signing up when you turn 65. Many people delay enrollment because they’re still working, covered by an employer plan, or unsure of what steps to take. While delaying Medicare can be the right choice in some situations, doing so incorrectly can lead to penalties, coverage gaps, and higher costs down the road.

Here’s what you need to know before deciding to delay Medicare enrollment.

When You’re First Eligible for Medicare

Most people become eligible for Medicare at age 65. Your Initial Enrollment Period (IEP) lasts seven months:

  • Three months before your 65th birthday month

  • Your birthday month

  • Three months after your birthday month

During this time, you can enroll in Medicare Parts A and B without penalties.

When Delaying Medicare Is Usually Okay

You may be able to delay enrolling in Medicare Part B (and sometimes Part D) without penalty if:

  • You are still working, and

  • You have creditable employer health coverage from a current employer (yours or your spouse’s)

In this case, you can enroll later during a Special Enrollment Period (SEP) once your employment or coverage ends.

However, COBRA, retiree coverage, or individual health plans generally do not count as creditable employer coverage for delaying Medicare.

What Happens If You Delay Medicare Without Proper Coverage

If you delay enrollment and don’t have qualifying coverage, you may face the following consequences:

Late Enrollment Penalties

  • Part B Penalty: Your premium increases by 10% for every full 12-month period you were eligible but didn’t enroll. This penalty usually lasts for life.

  • Part D Penalty: You may pay a penalty if you go 63 days or more without creditable prescription drug coverage. This penalty is also typically permanent.

Coverage Gaps

If you miss your enrollment window, you may have to wait until the General Enrollment Period (January 1–March 31) to sign up, with coverage starting later in the year. This can leave you without coverage for months.

Higher Long-Term Costs

Even small penalties can add up over time, increasing your healthcare costs year after year.

Common Reasons People Accidentally Delay Medicare

  • Assuming employer coverage automatically replaces Medicare

  • Not realizing retiree or COBRA coverage doesn’t protect against penalties

  • Missing enrollment deadlines due to confusion

  • Believing Medicare enrollment is automatic for everyone (it’s not)

How to Avoid Problems When Delaying Medicare

If you’re considering delaying Medicare:

  • Confirm whether your current coverage is creditable

  • Keep documentation from your employer or insurer

  • Know when your Special Enrollment Period begins and ends

  • Get guidance before making changes to your coverage

The Bottom Line

Delaying Medicare enrollment isn’t always a mistake—but delaying it incorrectly can be costly. Understanding your coverage and timing is key to avoiding penalties and gaps in care.

If you’re unsure whether delaying Medicare is right for you, it’s best to review your situation with a knowledgeable professional who can help you make an informed decision.

Jocelyn Wolf