Once you have the document, you can sign up for a Medicare Supplement or a Medicare Advantage Plan and you will be accepted. As for your husband, he will first have to take the document to Social Security in order to enroll himself in Medicare Part A and B.
Al: Now the only way the Part B penalty comes into play is if, for some reason, your husband does not enroll in Part B in a timely fashion.
The penalty for not signing up is 10% for each 12-month period that goes by when he could have had B but didn’t sign up. And, yes, if he goes 24 months, the penalty is 20%. The amount is added on to the regular Part B premium forever.
The enrollment period for late people is only January 1 to March 31 each year, and Part B coverage doesn’t begin until July 1 of that year.
Tom: Because Shirley is not going to let that happen, here is the more likely scenario: husband decides to retire; does not take COBRA as it costs an arm and a leg; then he has 8 months (yes, eight!) to enroll in Part B with no penalty.
Because Shirley is now ready to travel and enjoy life, her husband immediately takes the “creditable” document to Social Security and signs up for Medicare Part B. Once that magic card arrives in the mail, he signs up for the same supplement or advantage plan that Shirley is on.
However, the supplement or advantage plan paperwork is only guaranteed for the first two months of ending employment.