The Initial Enrollment Period (IEP) refers to the seven months surrounding your 65th birthday, during which most people are first eligible to enroll in a Medicare plan. Your IEP starts three months before you turn 65 and ends three months after.
If you’re approaching your 65th birthday, it’s important to understand how the Initial Enrollment Period works so you can make the right choices for your healthcare coverage. Read on to learn more about the IEP and how SelectQuote can help you prepare with our free, downloadable IEP checklist.
How does the Initial Enrollment Period work?
The Initial Enrollment Period is your first chance to sign up for Medicare. This seven-month window generally starts three months before the month you turn 65, includes your birthday month, and ends three months after. For those who qualify for Medicare due to a disability, the IEP starts three months before your 25th month of receiving Social Security or Railroad Retirement Board disability benefits.
It's important to enroll during this period to avoid potential late enrollment penalties, which can permanently increase your monthly premiums for Part B and Part D.
However, if you're still working and have health coverage from an employer with 20 or more employees, you may be able to delay Part B enrollment without penalty and qualify for a Special Enrollment Period later. If you are already receiving Social Security benefits, you will likely be automatically enrolled in Medicare Parts A and B, and you'll receive your Medicare card in the mail before your 65th birthday.
FAQs About the Initial Enrollment Period
What types of coverage can I enroll in during my IEP?
During your Initial Enrollment Period, you can enroll in:
Original Medicare (Parts A and B): You can sign up for both Medicare Part A (Hospital Insurance) and Medicare Part B (Medical Insurance). In some cases, if you are already receiving Social Security or Railroad Retirement Board benefits, you may be automatically enrolled in both parts.
Medicare Advantage (Part C): If you are already enrolled in both Part A and Part B, you are also eligible to join a Medicare Advantage plan (Part C). These plans offer the same coverage as Original Medicare but are sold by private companies approved by Medicare.
Medicare Part D (Prescription Drug Coverage): You can also enroll in a standalone Medicare Prescription Drug plan (Part D) during this time.
When will my coverage start after my Initial Enrollment Period?
The date your Medicare coverage begins depends on when you enroll. The sooner you sign up, the sooner your coverage can start. If you enroll during the three months before the month you turn 65, your coverage will begin on the first day of your birthday month (a special exception: if your birthday is on the first day of the month, your coverage will start on the first day of the preceding month).
If you enroll during your birthday month or the three months after, your coverage will begin on the first day of the month after you enroll. For example, if you enroll in July, your coverage will start on August 1.
What if I still have employer health insurance?
If you or your spouse is still working and has health insurance through a current employer, you may be able to delay your Medicare enrollment without facing late enrollment penalties. The decision to delay depends on the size of the employer.
If the employer has 20 or more employees, your group health plan is generally the primary payer, and you can typically postpone enrolling in Medicare Part B (and sometimes Part A if you're not eligible for premium-free coverage). When you or your spouse eventually stops working, or the employer coverage ends, you will then qualify for a Special Enrollment Period (SEP). This SEP lasts for eight months and allows you to sign up for Medicare Parts A and B without a penalty.
However, if the employer has fewer than 20 employees, Medicare usually becomes the primary payer, and delaying enrollment in Part B can lead to gaps in coverage and potential penalties. It's always best to contact your employer's benefits administrator to understand how your specific plan coordinates with Medicare.
What if I miss my IEP?
If you don't enroll in a Medicare plan when you are first eligible and don't have creditable coverage from an employer, you'll generally have to wait for a different enrollment period to sign up. The most common of these is the General Enrollment Period, which runs from January 1 to March 31 each year. If you enroll during this time, your coverage will begin the month after you sign up.
However, it’s important to be aware of potential penalties for missing your IEP. For Part B, the monthly premium can increase by 10% for each full 12-month period you were eligible but didn't enroll. For Part D, the penalty is 1% of the national average premium for each month you delay enrollment. These penalties are not one-time fees; they are added to your monthly premiums for as long as you have that type of Medicare coverage.
Prepare for Your Initial Enrollment Period With SelectQuote’s Free IEP Checklist
Preparing for your IEP can seem overwhelming, but we’re here to make it easier. SelectQuote’s free IEP checklist gathers everything you need to know about the Initial Enrollment Period in one place, including:
Steps to prepare for your IEP
Information about how to enroll during your IEP
Where to go once you’re ready to enroll
