Quick Answer
If you choose to delay your Medicare coverage, you’ll want to ensure you have creditable coverage. Creditable coverage must provide you with benefits that are as good as or better than Medicare’s coverage.
Coverage Comparison by Plan Type
| Plan Type | Coverage | Notes |
|---|---|---|
| Original Medicare | Varies | Coverage depends on specific services |
| Medicare Advantage | Varies | Additional benefits may be available |
| Medigap | Supplements | Helps cover out-of-pocket costs |
Understanding Your Coverage Options
Table of Contents:
1. [What is Creditable Coverage for Medicare Part B?]()
2. [What is Creditable Coverage for Medicare Part D?]()
3. [Notice of Creditable Coverage]()
What is Creditable Coverage for Medicare Part B?
It is not uncommon to delay Medicare Part B because you are still working and covered under your employer’s health plan. However, not all employer coverage is considered creditable and delaying Medicare Part B without creditable coverage can be detrimental to your wallet in the future.
If you do not enroll in Medicare Part B as soon as you become eligible for Medicare, you may be subject to a penalty. The [Medicare Part B penalty]() increases incrementally for every year you lack creditable coverage. When you eventually enroll in Medicare Part B, you will pay the penalty plus your [Medicare Part B premium]() each month.
To know if your coverage is creditable or not, you should receive a letter from your insurance carrier each year to notify the Medicare-eligible members of your household of the credibility of your coverage.
Examples of Creditable Coverage for Medicare Part B
If you are approaching Medicare eligibility and wish to delay Medicare Part B without penalty, you must have creditable health coverage. Some of the most common types of creditable coverage include:
[Large employer group plans]()
Union-sponsored health plans
Examples of Coverage not Creditable for Medicare Part B
When it comes to creditable coverage, not all plan types qualify. You will want to be sure that your health care plan is considered creditable for Medicare Part B when delaying Part B coverage.
Examples of coverage that is not creditable for Medicare Part B include:
TRICARE
What is Creditable Coverage for Medicare Part D?
Creditable prescription drug coverage, as defined by Medicare, is “prescription drug coverage that’s expected to pay, on average, at least as much as Medicare drug coverage”.
In some cases, coverage may be creditable for Medicare Part D but not creditable for Medicare Part B. Thus, it is easier to delay Part D without being subject to the late enrollment penalty.
Examples of Coverage that Could be Creditable for Medicare Part D:
Drug coverage from a current or former employer/union
TRICARE
Indian Health Service
✦ Frequently Asked Questions
David Haass
AuthorDavid Haass is the Chief Technology Officer and Co-Founder of Elite Insurance Partners and MedicareFAQ.com.
Ashlee Zareczny
ReviewerAshlee Zareczny is the Director of Operations for MedicareFAQ. As a licensed Medicare agent in all 50 states, she is dedicated to educating those eligible for Medicare.