Medicare Economic Security Solutions Act

The Medicare Economic Security Solutions Act would overhaul the late enrollment penalty associated with Medicare Part B. Specifically, it would raise the penalty rate from 10% to 15% of the monthly Part B premium and extend the calculation period to twice the length of a 12-month period (effectively 24 months) of delayed enrollment. The bill would also exclude certain periods of other health coverage—COBRA, retiree coverage, and VA health coverage—from counting toward the late enrollment penalty. In addition, it creates a new Special Enrollment Period for individuals whose COBRA or retiree coverage terminates, allowing them to enroll in Part B without facing the penalty. The measure includes effective-date provisions (prospectively applying to months beginning after a 90-day enactment period) and conforming amendments to ensure consistency across relevant Medicare provisions. In short, the bill toughens the late enrollment penalty in most cases, while offering an explicit exemption and enrollment pathway for people with gaps in coverage due to COBRA, retiree plans, or VA benefits. It also aligns related parts of the Social Security Act to implement these changes.