Late Enrollment Penalty

Late Enrollment Penalties

Medicare late enrollment penalties are extra monthly amounts added to your premium when you enroll after you’re first eligible and didn’t have qualifying (“creditable”) coverage in the meantime. They’re designed to discourage gaps in coverage and, for most people, they’re long-lasting—Part B’s penalty is generally permanent, and Part D’s penalty lasts as long as you have Part D. In short: wait too long without the right coverage, and you’ll likely pay more every month.

Here’s the gist by part:

Part A (Hospital Insurance): Most people pay $0 and owe no penalty. If you must pay a Part A premium and you delay, the penalty is 10% of your Part A premium and you pay it for twice the number of full years you delayed.
Part B (Medical Insurance): +10% of the standard premium for every full 12-month period you were eligible but didn’t sign up—and this increase is permanent.
Part D (Prescription Drugs): 1% of the national base premium for each full month you went without Part D or other creditable drug coverage, rounded to the nearest $0.10, and it applies as long as you have Part D.

Table of Contents:

How to Avoid Medicare Late Enrollment Penalties

Use your IEP: Enroll during your Initial Enrollment Period (7 months around your 65th birthday or Medicare eligibility).
Keep “creditable” coverage: If you’re working past 65, verify that your employer/union plan is creditable (Part B requires coverage from active employment; COBRA/retiree coverage doesn’t delay the Part B penalty). For Part D, your drug coverage must be creditable—ask your plan for the annual notice.
Leverage SEPs: Certain life events (e.g., losing employer coverage) trigger a Special Enrollment Period—use it promptly.
Save proof: Keep your Creditable Coverage letters and employer verification; you may need them to show you qualify for a penalty waiver.
Get help if eligible: If your income is limited, Extra Help (LIS) can lower Part D costs and generally eliminates the Part D penalty.
Ask about appeals: If you believe a penalty is in error, you can request a reconsideration with documentation.

How to Avoid Medicare Late Enrollment Penalties

Navigate to Your Late Enrollment Calculator

Part A Late Enrollment Penalty Calculator

Part B Late Enrollment Penalty Calculator

Part D Late Enrollment Penalty Calculator

Medicare Part A Late Enrollment Penalty

Medicare Part B Late Enrollment Penalty

Medicare Part D Late Enrollment Penalty

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