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Medicare Part D Late Enrollment Penalty

Medicare Part D Late Enrollment Penalty

Many people are not aware that if you decide not to enroll in Medicare Part D when you are first eligible, you may be subject to a penalty. The late enrollment penalty for Medicare Part D is an additional 1% (of the national average premium amount) for each month that you could have had Part D but didn’t sign up for it. You will pay the penalty for as long as you’re enrolled in Medicare Part D.

Example:
Mr. Jones waited to sign up for Part D one year after he was eligible. He’ll pay a 1% penalty for each full 31-day period he waited. The penalty is added to his Part D plan’s monthly premium.

2016 national average Part D premium             $34.10

12 months x 1% = 12% of national average       $4.09

Mr. Jones's Part D monthly premium for 2016     Part D premium + $4.09

This penalty may not apply to you if you have proof of creditable drug coverage, which is defined as coverage that is at least as good as what Medicare Part D plans are required to provide.


For more information on Medicare, contact us anytime at (941) 405 – 3900.

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