Part D late enrollment penalty

- - Generally, you won’t have to pay a Part D penalty if:
    - You have
      creditable drug coverage
      
      (coverage that’s similar in value to Part D) OR
    - You qualify for Extra Help
  - You’ll pay an extra 1% for each month (that’s 12% a year) if you:
    - Don’t join a Medicare drug plan when you first get Medicare.
    - Go 63 days or more without creditable drug coverage).
  - You may also pay a higher premium depending on your income.
  - After you join a Medicare drug plan, the plan will tell you if you have to pay a penalty and what your premium will be.

Example:
If you waited 14 months after you were eligible for Medicare to join a Medicare drug plan, and you didn’t have creditable drug coverage, you’ll have to pay a 14% late enrollment penalty in addition to your monthly plan premium.

The penalty amount comes from the “national base beneficiary premium” ($32.74 in 2023) ($34.70 in 2024).
The national base beneficiary premium changes each year, so your penalty amount may also change each year. This monthly penalty is added for as long as you have Medicare drug coverage, even if you switch plans.

In 2023:

$32.74 (2023 national base beneficiary premium)
X 0.14 (14% penalty)

$4.58 (rounded to the nearest $0.10 = $4.60)
$4.60 will be your penalty for 2023. This amount is added to your plan’s monthly premium for 2023.

In 2024:

$34.70 (2024 national base beneficiary premium)
X 0.14 (14% penalty)

$4.86 (rounded to the nearest $0.10 = $4.90)
$4.90 will be your penalty for 2024. This amount is added to your plan’s monthly premium for 2024.

Get more information

https://www.medicare.gov/drug-coverage-part-d/costs-for-medicare-drug-coverage/part-d-late-enrollment-penalty

Betsy Villa

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Part D Late Enrollment Penalties

Part D late enrollment penalty

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