Medicare Part B is the medical insurance component of Original Medicare. It pays for medically required and preventive treatments such as doctor visits and outpatient care.

Here's all you need to know about terminating Medicare Part B coverage.

Reasons to cancel Medicare Part B

You are not compelled to keep Medicare Part B, although the majority of individuals do. Some people may consider canceling Part B if:

• They have additional health insurance.
• They believe they cannot afford the monthly fee.

If you are not working but have health coverage through a prior employer, the Health Insurance Marketplace, Veterans Affairs, a private insurer, Medicaid, or COBRA, you should keep Medicare Part B even if you are tempted to abandon it. When you keep Medicare Part B, it becomes your primary insurer (the company to which you submit your claims first). Then, any charges that Part B does not pay can be sent to your non-Medicare secondary policy.

There is no reason to be concerned about Part B premium prices if you are on Medicaid. As long as you are on Medicaid, your state will pay your Part B premiums. Furthermore, anyone who believes they will be unable to afford Part B premiums is advised to apply for a Medicare Savings Program, which may assist cover those costs and more.

Only if you're still working and have health insurance from a business with 20 or more employees — or if you're covered by your spouse's employer-provided health insurance — does it make sense to drop Part B.

Risks of canceling Medicare Part B coverage

Before terminating Part B coverage, it's critical to recognize the risks:

• You may have a gap in your health coverage. If you desire to re-enroll in Medicare Part B later, you may have to wait until the next general enrollment period (January 1 to March 31 each year) to do so. Then, Part B coverage begins on July 1 of that year, so if you don't have other coverage, you might be out of luck until then.
• You may be subject to a permanent late enrollment penalty if you decide to re-enroll. Unless you qualify for a special enrollment period to enroll in Medicare Part B, you will be assessed a monthly late enrollment penalty for as long as you maintain Part B coverage. The penalty amount increases the longer you wait to enroll in Medicare Part B after becoming eligible.
• Your medical expenses may soar. Without Medicare Part B, you may have to pay for services and supplies that would otherwise be covered out of pocket.

How to cancel Medicare Part B coverage

If you're certain you don't want Medicare Part B, there are a few options for canceling it.

• If you were automatically enrolled recently and received a welcome packet, follow the instructions in the packet to discontinue Part B and return the enclosed Medicare card.
• If you’ve been actively enrolled, contact Social Security to cancel your Part B coverage. You can contact a local Social Security office by calling 800-772-1213 or using the Social Security office locator. To complete the procedure, you must submit Form CMS-1763 and may be required to schedule a personal interview with Social Security.

How to re-enroll in Medicare Part B coverage

If you want to re-enroll in Medicare Part B but aren't qualified for a special enrollment period, you can do so during the standard enrollment period, which runs from January 1 to March 31. You should be aware that the Medicare Part B late enrollment penalty may result in a higher monthly premium than if you had not withdrawn this coverage.

If you are currently enrolled in an employer-sponsored group health plan and want to re-enroll in Medicare Part B, you may be eligible for a special enrollment period. This means you can enroll in Medicare Part B at any point during the year as long as your current health coverage is still in effect — or for the eight months following the month your employment or health coverage terminates, whichever comes first.

Those with COBRA coverage must re-enroll when their work ends or within eight months after their coverage expires, whichever comes first.

To re-enroll in Medicare Part B, either during the general enrollment period or a special enrollment period, do the following:

• Apply online at Social Security’s website.
• Call Social Security at 800-772-1213 (TTY 1-800-325-0778).
• Contact your nearest Social Security office. To find the nearest Social Security office, utilize the office locator.
• If you or your spouse worked for a railroad, call the Railroad Retirement Board at 877-772-5772.

For more information about Medicare, go to Medicare.gov or contact 800-MEDICARE (800-633-4227, TTY 877-486-2048).