I have seen a lot of comments, especially in the FEHB world, about the 10% Part B penalty for each year retirees delay enrollment after first eligible (except for certain exceptions).
However, I did a quick check of the yearly Part B premium increases over the past 20 years and I think it came out to a little over 6% average per year.
So, it would seem the actual increase, based on the historical average of the past 20 years, could be more like 16+% per year (not penalty) when making a decision about delaying Part B enrollment? Paying a 200% penalty in 20 years would be one thing, but paying 320% more might be another. Actually I guess it could be more since it would be like compounded? Of course, the yearly increases could be more or less, but a 20 year timeframe should give a good idea.
I'll leave this one for the math geniuses here to figure out.
However, I did a quick check of the yearly Part B premium increases over the past 20 years and I think it came out to a little over 6% average per year.
So, it would seem the actual increase, based on the historical average of the past 20 years, could be more like 16+% per year (not penalty) when making a decision about delaying Part B enrollment? Paying a 200% penalty in 20 years would be one thing, but paying 320% more might be another. Actually I guess it could be more since it would be like compounded? Of course, the yearly increases could be more or less, but a 20 year timeframe should give a good idea.
I'll leave this one for the math geniuses here to figure out.
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