Dec. 7 is deadline for Medicare coverage changes; opting out of coverage a costly option

The deadline for joining, switching or dropping your Medicare Health Plan is Dec. 7 and looming.

If you make changes, they will become effective Jan. 1, 2023.

That's a significant date for Citrus County where 36.3% of residents are at least 65 years old, according to the U.S. Census Bureau.

Jan. 1 marks another important healthcare event.

If you're enrolled in a Medicare Advantage plan, you can switch to a different Medicare Advantage plan or switch to traditional Medicare (and join a separate Medicare drug plan) from Jan. 1 to March 31.

As for the coming Dec. 7 deadline: if you miss the deadline and already have traditional Medicare, it will simply roll over into 2023, according to Agingcare.com.

People who will be turning 65 well after Dec. 7 will have seven months to sign up for traditional Medicare. That's three months before you turn 65, the month you turn 65, and three months after you turn 65.

Can you decline Medicare and a private Medicare Advantage Plan?

Technically, Medicare is not mandatory, but to opt out would be complicated and costly.

First some basics.

Original Medicare is divided into Part A and Part B.

Part A is hospital insurance and helps cover the cost of inpatient hospital care, short-term skilled nursing facilities, hospice care and some health care services.

Park B is medical insurance and helps cover doctor visits, ambulance service and durable medical equipment.

What does Part A and Part B cost you?

Most people don't have to pay Part A premiums because they paid taxes into the system. But most everyone pays the Part B premium, which changes every year. In 2023 it will be $164.90 or more, depending on your income.

Thinking of not signing up or dropping out of Medicare altogether during the enrollment period?

Think again.

It is mandatory to sign up to Medicare Part A once you enroll in Social Security and get Social Security payments. The two are permanently linked.

Failing to do so will cost you in penalties if you sign up later if Part A wasn't free to you.

Part B is another issue, according to Healthline.

Failing to sign up for Part B will cost you in fines based on the number of years you went without and based on what your monthly premiums would have been.

Most people don't decline Part A given it's premium-free and won't cost you anything if you don't utilize it.

Declining Part A and Part B is possible, but it will mean withdrawing from all your monthly benefits to do so, including your Social Security payments. You also have to repay any benefits that you've received thus far.

It also might mean having to meet with a Social Security representative to make sure of the consequences.

That's all because Medicare wants you to start paying into the system as soon as you can, and while you are your healthiest at your age. That helps pay for care for those who are older and in need of more care.

The most common exception is if you don't retire and you want to keep your employer's insurance, in which case you can sign up for Medicare late, usually without a penalty, according to the Centers for Medicare and Medicaid Services.

Part D, which helps cover prescription drug costs, is not mandatory, but there are penalties for signing up late. Many people sign up for one of the least costly plans, which allows them to later change to one with more coverage when they need it.

To avoid Part B monthly premiums, some people sign onto private Medicare Advantage plans that include lower premiums, but often require in-network utilization of hospitals and doctors.

Nearly half of people signing up for Medicare are signing up for Medicare Advantage plans. The number is growing, according to CMS.

Meanwhile, CMS officials want to remind you not to let the holidays distract you to where you miss the Dec. 7 deadline.