Medicare Part-B penalty (10% per year) for late enrollment ?
Medicare part B expects you to enroll at age 65 and assesses a 10% penalty per year you do not file/apply.
In this case a couple were living overseas (foreign citzens). The husband was getting Social Security based on working in the US decades ago. Upon his passing, the widow moved back to the US and acquired a Green Card and then Citizenship. After getting her Green Card, she applied for benefits and started getting the SSA survivor benefit payment, and Medicare Part B coverage at age 85. However, SSA decided that she has to pay a 200% penalty for not signing up 20 years prior at age 65.
Per AI (and common sense fairness...):
According to the Social Security Administration (SSA) POMS (Program Operations Manual System) HI 00805.005, to be eligible for Medicare Part B based on age, an individual must:
- Be age 65 or older;
- Be a U.S. resident; AND
- Be either a U.S. citizen OR an alien lawfully admitted for permanent residence who has resided in the U.S. continuously for the 5 years immediately preceding the month of filing.
As she was not eligible for Medicare Part B until she became a Permanent Resident, is it correct / legal for them to assess a 200% penalty for the 20 years when she was legally prohibited for being a Medicare Part B recipient? i.e. she would have been paying monthly premiums for a program that she was not eligible to use.
Has anyone encountered this situation? Any adivice?