I am retired from federal service and plan on taking social security at age 66 and 4 months. I am currently 65. I have a federal health plan now. I think I must apply for Medicare within 3 months. If I take social security at 66 and 4 Months, will I be billed for Medicare prior to that date ? If I hold off applying for Medicare until I take social security, will I incur a penalty fee ?

Hi. Normally if you sign up for Part B of Medicare prior to when you sign up for monthly benefits, you're billed quarterly for the premiums. However, you probably could opt to have your premiums deducted from your federal pension instead.

There's no penalty for applying late for Part A of Medicare, but you may have to pay a premium surcharge if you enroll in Part B of Medicare more than 3 months after the month you turned age 65. The only way that you can enroll in Part B of Medicare more than 3 months after the month you reach 65 without incurring a premium surcharge is if you have employer group health coverage from an employer for whom either you or your spouse is an active employee. If you're now retired, you wouldn't be considered to be an active employee.

If you miss your initial enrollment period (IEP), you can sign up for Part B coverage in any general enrollment period (GEP) after you turn age 65. GEPs occur every year from January 1 through March 31. If you enroll in Part B during a GEP, your Part B coverage starts on July 1 of the year in which you enroll, and you must pay a 10% premium surcharge for every 12 months that pass between the end of your IEP and the end of the GEP in which you enroll.

Best, Jerry