Medicare Penalties

My Medicare Choices

Late Enrollment Penalty

Part B covers immunizations, insulin supplies, chemotherapy drugs, and medications for organ transplant covered by Medicare. However, if you don’t enroll for Part B, you may have to pay the penalty. You won't pay a late enrollment penalty if you meet certain conditions that allow you to sign up for Part B.

Part B Penalty

If you don't enroll in Part B when you're first able, you may have a penalty. Your monthly premium may go up 10% for each 12-month period you could've had Part B but didn't sign up. In most cases, you'll have to pay this penalty each time you pay your premiums for as long as you have Part B. And the penalty increases the longer you go without Part B coverage.

You won't pay a late enrollment penalty if you meet certain conditions that allow you to sign up for Part B during a special enrollment period.

Exceptions

  • If you are working and have coverage through your employer
  • If your spouse is still working and their employer's plan covers you
  • Suppose you enrolled late for your Medicare Part B and did not have credible coverage. In that case, you will be able to enroll during the Medicare general enrollment period, which is from January 1 to March 31. Your effective date will be July 1

Part D Penalty

When you first get Medicare, even if you only get Part A or only Part B and do not have creditable prescription coverage you will be penalized 1% of the national average for every month you do not have prescription coverage.

Creditable Coverage

Medicare states your prescription drug coverage is expected to pay as much as standard coverage for Medicare Part D plans. This penalty can add up, and you have to pay it each month for as long as you have Part D.

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