Could Medicare Delays Cost You?
Medicare Late Enrollment Penalties: Part B & Part D
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What Are Medicare Penalties?
Medicare is designed to be there when you need it. But if you don’t sign up when you’re first eligible—and you don’t have other qualifying coverage—you may face lifetime penalties. These are extra amounts added to your monthly premium.
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Part B Penalty (Medical Insurance)
When it applies: If you delay enrolling in Medicare Part B (doctor visits, outpatient care, preventive services) and you don’t have creditable coverage through an employer or spouse’s employer.
How it’s calculated:
Your premium goes up 10% for every full 12-month period you could have had Part B but didn’t enroll.
This increase lasts as long as you have Part B.
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Jackie’s Story (2024):
Jackie turned 65 in 2021 while she was freelancing and thought, “I’m healthy—I’ll just wait.” She delayed Part B for 3 full years. When she finally enrolled in 2024, her Part B premium increased by 30% (10% × 3 years).
The standard Part B premium in 2024 is $174.70.
Jackie’s new monthly cost became about $227.10.
This 30% increase is permanent as long as she has Part B.
Important: If the standard Part B premium goes up in 2025 or future years, Jackie’s penalty goes up too. She will always pay 30% more than the standard premium in effect for that year.
Devon’s Story (2024):
Devon had retiree coverage that didn’t include prescription drugs. He thought he’d never need medications, so he skipped Part D. He went 24 months without coverage. When he finally enrolled, Medicare applied a 24% penalty (1% × 24 months).
24% of $34.70 = $8.33, rounded to $8.30.
That $8.30 was added to his Part D premium each month, permanently.
Part D Penalty (Prescription Drug Coverage)
When it applies: If you don’t join a Medicare Part D plan (or a Medicare Advantage plan with drug coverage) when first eligible, and you go 63 days or more without creditable prescription drug coverage.
How it’s calculated:
Medicare charges 1% of the “national base beneficiary premium” for each month you were without coverage.
For 2024, the national base beneficiary premium is $34.70.
The penalty is rounded to the nearest $0.10 and added to your monthly Part D premium.
This penalty is permanent as long as you have Part D.
Why These Penalties Matter
They are permanent—you don’t “pay them off.”
They add up over time, especially since premiums can increase annually.
Avoiding them saves money and stress.
How to Avoid Penalties
Enroll on time: Know your Initial Enrollment Period (3 months before, the month of, and 3 months after your 65th birthday).
Keep proof of coverage: Save any letters stating your employer or drug coverage is creditable.
Act promptly: When your other coverage ends, you usually have a Special Enrollment Period (8 months for Part B, 63 days for Part D).
What To Do Next
Review your coverage with HR, benefits office, or your plan provider.
Ask: Is my drug coverage creditable?
Save all documentation.
Reach out to me—I’ll help confirm your timelines and explore your plan options.
