Medicare late enrollment penalties are additional charges that Medicare beneficiaries pay if they delay enrolling in Medicare Part B (medical insurance) or Medicare Part D (prescription drug coverage) beyond their initial enrollment period.
Part B late enrollment penalty
If you delay enrolling in Part B for more than 12 months after you are first eligible, you will have to pay a 10% penalty for each 12-month period that you delayed enrollment. This penalty is added to your monthly Part B premium and must be paid for as long as you have Medicare Part B.
Part D late enrollment penalty
If you delay enrolling in Part D for more than 63 days after your Initial Enrollment Period ends, and you do not have creditable prescription drug coverage, you will have to pay a late enrollment penalty. The penalty is calculated by multiplying 1% of the national base beneficiary premium ($32.74 in 2023) by the number of full, uncovered months that you were eligible but did not enroll in Medicare drug coverage and went without other creditable prescription drug coverage. The final amount is rounded to the nearest $.10 and added to your monthly premium.
How to avoid late enrollment penalties
The best way to avoid Medicare late enrollment penalties is to enroll in Part B and Part D during your Initial Enrollment Period. Your Initial Enrollment Period begins three months before the month of your 65th birthday and ends three months after the month of your 65th birthday. If you have employer health insurance when you first become eligible for Medicare, you may be able to delay enrolling in Part B without penalty until you lose your employer coverage. However, you should enroll in Part D as soon as you become eligible, even if you have employer prescription drug coverage.
Special enrollment periods
There are a few special enrollment periods when you may be able to enroll in Medicare Part B or Part D without penalty, even if you missed your Initial Enrollment Period. These special enrollment periods include:
- If you have employer health insurance and lose your coverage, you have an eight-month special enrollment period to enroll in Part B without penalty.
- If you have employer prescription drug coverage and lose your coverage, you have a two-month special enrollment period to enroll in Part D without penalty.
- If you have a disability and are eligible for Medicare due to your disability, you have a seven-month special enrollment period to enroll in Part B without penalty.
- If you have a disability and are eligible for Medicare due to your disability, you have a two-month special enrollment period to enroll in Part D without penalty.
If you have any questions about Medicare late enrollment penalties or special enrollment periods, you can contact Social Security at 1-800-772-1213.
