You may incur a Part D late enrollment penalty if, for any continuous period of 63 days or more after your Initial Enrollment Period is over, you go without one of the following:
- A Medicare Prescription Drug Plan (Part D)
- A Medicare Advantage Plan (Part C) (like an HMO or PPO) or another Medicare health plan that offers Medicare prescription drug coverage
- Creditable prescription drug coverage
The Part D late enrollment penalty is an amount added to your Medicare Part D monthly premium once you enroll in a Part D plan. The amount of the late enrollment penalty is calculated based on how long you went without Part D or creditable prescription drug coverage. The penalty is calculated by multiplying 1% of the “national base beneficiary premium” ($32.74 in 2020, $33.06 in 2021) times the number of full, uncovered months you didn’t have Part D or creditable coverage. The national base beneficiary premium can change from year to year, so your penalty amount may change as well. To avoid any penalties, get in touch with a Medicare with us several months before you turn 65 or if you are over 65 and are going to lose your employer group health insurance.
