Can clients who prefer to keep their Marketplace coverage defer Medicare enrollment without late enrollment penalties?

Generally no, unless the individual meets the criteria for the CMS equitable relief policy, which is specific to Medicare Part B late enrollment penalties.  

To qualify for equitable relief, individuals must:

• Have attempted to actively enroll in Medicare Part B, and 
• Provide documentation that “error, misrepresentation, or inaction of a federal worker or an agent of the federal government (such as an employee of the Social Security Administration, CMS, or a Medicare administrative contractor) resulted in late Part B enrollment.” 

Certain time-limited equitable relief policies may also be available.

• CMS may provide a Medicare Special Enrollment Period (SEP) for individuals affected by a weather-related emergency or major disaster to enroll in Medicare Part B without incurring a late enrollment penalty. 
• Currently, equitable relief is available to individuals who were unable to contact the Social Security Administration after January 1, 2022 to enroll in Medicare Part B during their Initial Enrollment Period or Special Enrollment Period. This time-limited policy is available through December 30, 2022.

In all other cases, individuals who did not actively attempt to enroll in Medicare and who chose to keep their Marketplace coverage instead will likely incur Medicare late enrollment penalties if they choose to enroll in Medicare coverage at a later point.

Learn more here.