Medicare Supplement

Late Penalties and Medicare Enrollment in Tuscaloosa

TUSCALOOSA, Ala. — If a 65th birthday is on the calendar this year, a clock is already ticking. Medicare's Initial Enrollment Period gives most people a seven-month window to sign up — and missing it can lead to lifetime late penalties and gaps in coverage.

Here's a plain-English guide to what that window is, when it opens, and the first steps to take from right here in Tuscaloosa.

What the Initial Enrollment Period actually is

Your Initial Enrollment Period (IEP) is a seven-month stretch tied to your 65th birthday:

• The three months before your birthday month
• Your birthday month
• The three months after

For example, if you turn 65 in June, your IEP runs March 1 through September 30. If you sign up during the three months before your birthday month, coverage generally starts on the first day of your birthday month. Sign up later, and coverage starts the month after you enroll.

This window is your one shot to get in on time without a Special Enrollment Period or a General Enrollment Period later — and without the possibility of late-enrollment penalties.

Do you need to sign up, or are you enrolled automatically?

If you're already getting Social Security or Railroad Retirement benefits before 65, you'll typically be enrolled in Part A (hospital) and Part B (medical) automatically. Your red, white, and blue Medicare card should arrive in the mail about three months before your birthday.

If you're not yet collecting Social Security — which is more common now that full retirement age has moved past 65 — you have to sign up yourself at SSA.gov or by calling Social Security. Nothing happens on its own.

Still working past 65? Read this carefully

Many Tuscaloosa residents keep working — at the University of Alabama, DCH Health System, Mercedes-Benz, or a local business — past 65 and stay on employer coverage. Whether to delay Part B depends on the size of that employer:

• 20 or more employees: You can usually delay Part B without penalty and pick it up later through a Special Enrollment Period when the job or coverage ends.
• Fewer than 20 employees: Medicare often becomes the primary payer at 65, and delaying could leave you underinsured.

COBRA and retiree coverage do not count as active employer coverage for delaying Part B. This is a common and expensive mistake. Confirm your situation with your benefits office and, if in doubt, with Social Security.

What 2026 looks like on the money side

A few program-level numbers worth knowing as you plan:

• Part D out-of-pocket cap: $2,100 in 2026. Once you hit that ceiling on covered prescriptions, you pay nothing more for the rest of the year.
• Part D maximum deductible: $615.
• Coverage gap: The old "donut hole" is gone as of 2025. Part D now works in three phases.
• Medicare Prescription Payment Plan: An optional program that lets you spread your drug costs into monthly payments instead of paying big amounts at the pharmacy counter.
• IRMAA: Higher-income beneficiaries pay extra for Parts B and D. In 2026, those surcharges begin above $109,000 in income for a single filer.

What's available in Tuscaloosa County

Plan choices in Medicare are set at the county level, not by city. Tuscaloosa is in Tuscaloosa County, where beneficiaries typically have access to Original Medicare (Parts A and B), stand-alone Part D drug plans, Medicare Advantage plans, and Medigap (Medicare Supplement) policies.

To see the current list of plans available in Tuscaloosa County, use the official Plan Finder at Medicare.gov/plan-compare. It's updated every fall and pulls plans by ZIP code.

First steps to take right now

1. Mark your seven-month window on the calendar based on your birthday month. 2. Decide on Part B timing if you have employer coverage. Talk to your HR/benefits office. 3. Create a My Social Security account at SSA.gov so you can enroll online when the time comes. 4. List your medications and doctors. You'll need this to compare Part D and Medicare Advantage options in Plan Finder. 5. Get free, unbiased help. Alabama's State Health Insurance Assistance Program (SHIP) offers one-on-one Medicare counseling at no cost. Reach the Alabama SHIP at 1-800-243-5463.

Key dates to remember

• Initial Enrollment Period: The 7 months around your 65th birthday.
• Annual Enrollment Period: October 15 – December 7, when anyone with Medicare can change Part D or Medicare Advantage plans for the next year.
• Medicare Advantage Open Enrollment: January 1 – March 31, a one-time chance each year for people already in a Medicare Advantage plan to switch or return to Original Medicare.