ACA Marketplace and Medicare: When and How to Make the Switch
ACA Marketplace plans do not count as creditable coverage for Medicare Part B or Part D penalty purposes. Once you qualify for premium-free Part A, keeping a subsidized Marketplace plan can create timing problems, potential subsidy repayment, and permanent enrollment penalties if you miss your Initial Enrollment Period.
Key Rules
- Marketplace plans do NOT protect you from Medicare Part B or Part D late-enrollment penalties
- Continuing a subsidized Marketplace plan after becoming Medicare-eligible may require repaying subsidies received
- Missing your Initial Enrollment Period while on a Marketplace plan results in Part B late-enrollment penalties
- There is no Special Enrollment Period for Medicare based solely on dropping a Marketplace plan