Jesse M. Ehrenfeld, MD, MPH President | Official website
The American Medical Association (AMA) is calling for the federal government to simplify the Medicare enrollment process for seniors approaching age 65. The resolution suggests that a comprehensive checklist be created to help facilitate enrollment and prevent gaps in insurance coverage or permanent increases in premiums. The AMA aims to urge the Centers for Medicare & Medicaid Services to develop this checklist and educate seniors about potential late-enrollment penalties.
Millions of individuals face monthly late-enrollment penalties on top of their regular premiums due to missed deadlines. In 2022, approximately 2.5 million people paid late-enrollment penalties for Medicare Part D, while nearly 800,000 faced similar charges for Medicare Part B in 2021.
"These late-enrolment penalties levy a heavy financial burden on Medicare patients for the rest of their lives – often at a time when they can least afford it. These penalties are the result of patients being unaware of timelines. Medicare’s complexity should not result in a lifetime penalty," stated Toluwalese Ajayi, M.D., a member of the AMA’s Board of Trustees. "We must ensure that all patients, especially vulnerable populations, have the information needed to make informed decisions about their health care."
The process has become more complicated as automatic enrollment into Medicare Parts A and B at age 65 by the Social Security Administration has decreased with more individuals delaying benefits past this age.
Many seniors incur penalties due to unawareness or uncertainty on how to avoid them, leading costs to escalate rapidly. For Part B, there is a penalty increase of 10 percent on monthly premiums for each year without coverage, which remains indefinitely. On average, those penalized pay 27 percent more on premiums than others.
"The federal government must help seniors navigate a complex system with clear, concise guidelines that encourage enrollment and reduce the likelihood of penalties," Dr. Ajayi emphasized. "Too many seniors are bombarded with TV ads telling them about private plan offerings without covering the basics of how to sign up for Medicare... This is a fundamental government responsibility, and the AMA is ready to help."
