Medicare 2026

How Kearney residents can sidestep Medicare late penalties

KEARNEY, Neb. — For most people turning 65 in Buffalo County, the calendar is the single biggest thing standing between them and a lifetime Medicare penalty. Miss a key window for Part B or Part D, and the extra charge can follow you every month for as long as you have coverage.

The good news: the deadlines are fixed, they are public, and once you understand how they line up, they are not hard to hit.

The one window everyone gets: your Initial Enrollment Period

Your Initial Enrollment Period, or IEP, is a seven-month window built around your 65th birthday. It includes the three months before your birthday month, your birthday month itself, and the three months after.

This is the cleanest time to sign up for Part A, Part B, and a Part D drug plan. Enroll during the three months before you turn 65 and your coverage can start the first day of your birthday month. Wait until later in the window and coverage starts the month after you sign up.

If you are already getting Social Security when you turn 65, you will be enrolled in Part A and Part B automatically. Everyone else has to sign up on their own through the Social Security Administration.

The Part B penalty: 10% for every year you waited

The Part B late-enrollment penalty is the one that stings the most, because it is usually permanent.

For each full 12-month period you were eligible for Part B but did not sign up, Medicare adds 10% to your monthly Part B premium. Two years late means 20% extra. Four years late means 40% extra. And that surcharge stays on your premium for as long as you have Part B — not just a year or two.

The main way people avoid this without realizing it is through a Special Enrollment Period, or SEP. If you (or your spouse) are still actively working at 65 and covered by an employer group plan, you can generally delay Part B without penalty and sign up later, during an eight-month SEP that starts when the job or the coverage ends.

Two cautions for Kearney readers still on the job at 65:

• COBRA and retiree coverage do not count as active employer coverage for this purpose. The SEP clock starts when your active employment ends, not when COBRA runs out.
• Marketplace (ACA) coverage does not count either.

If in doubt, ask your HR office for something in writing confirming your coverage, and call your local State Health Insurance Assistance Program (SHIP) before you make a move.

The Part D penalty: small numbers that add up for life

The Part D penalty works a little differently but follows the same idea. If you go 63 days or more without “creditable” prescription drug coverage after you were first eligible, Medicare adds a penalty to any Part D plan you eventually join.

The math: 1% of the national base beneficiary premium for every full month you were uncovered. Two years without drug coverage is roughly a 24% surcharge on your Part D premium — every month, for as long as you have Part D.

“Creditable” is the key word. Your current drug coverage — through an employer, union, VA, TRICARE, or another source — is creditable if it is expected to pay, on average, at least as much as standard Medicare drug coverage. Your plan is required to send you a notice each year telling you whether it is creditable. Keep those notices. They are your proof if Medicare later asks why you delayed.

How the dates line up

A few situations trip people up in Kearney and across Buffalo County:

• Turning 65 and retiring at the same time. Use your IEP for Part A, Part B, and Part D. Do not lean on a Special Enrollment Period you have not earned yet.
• Turning 65 but staying on the job. You can usually delay Part B and Part D as long as your employer coverage is active and creditable. When the job ends, use the SEP.
• Missed your IEP entirely and have no other coverage. You will generally have to sign up during the General Enrollment Period, January 1 through March 31, with coverage starting the following month — and the Part B penalty will likely apply.
• Already on Medicare and shopping plans. The Annual Enrollment Period is October 15 through December 7. Medicare Advantage Open Enrollment runs January 1 through March 31. These windows are for changing plans, not for first-time Part B sign-ups.

Kearney is in Buffalo County, where a range of stand-alone Part D and Medicare Advantage plans are offered each year. The number of plans changes annually, but the enrollment deadlines above are the same nationwide.

What 2027 looks like for drug costs

Even if you are penalty-free, it helps to know what Part D looks like heading into 2027. The maximum Part D deductible is $700 in 2027, and out-of-pocket spending on covered drugs is capped at $2,400 in 2027. The old “donut hole” coverage gap was eliminated in 2025, so the program now has three phases instead of four.

If those out-of-pocket costs would land in big chunks, the Medicare Prescription Payment Plan lets you spread what you owe across the calendar year in monthly installments at no added cost. Higher-income enrollees — generally above $109,000 for a single filer in 2026 — also pay an IRMAA surcharge on top of standard Part B and Part D premiums.

Where to get answers you can trust

Penalty questions are personal. Before you delay Part B or drop drug coverage, talk to someone who can look at your specific situation:

• Medicare.gov for enrollment periods, plan finder, and official rules.
• 1-800-MEDICARE (1-800-633-4227), 24 hours a day, seven days a week.
• Nebraska SHIIP (Senior Health Insurance Information Program), the state’s free SHIP counselor service, for one-on-one help.
• Social Security Administration (ssa.gov or 1-800-772-1213) to actually enroll in Part A and Part B.