What Is the Penalty for Enrolling in Medicare Part D Late?
It would help to enroll in a Part D plan when you become qualified, even if you are not using a prescription drug. This is because Medicare usually adds on a standard one percent late enrollment penalty to your premium. To avoid this penalty, you must sign up within 63 days of your first eligibility period.
You can calculate the penalty rate using the national premium rate for the current year and multiplying it by the number of months you didn’t sign up when you were qualified. That is, if you delay signing up, your additional penalty will be based on how long you didn’t have Part D coverage.
It is important to note that a new base premium is formed every year. Your penalty changes when the premium increases or decreases. According to experts, people with a Medicare Advantage plan [6] at age 65 still need to get Part D coverage.
If you possess Medicare “creditable coverage” from another plan, you may not be penalized. For example, getting drug coverage that is almost the same with the basic Medicare Part D coverage from another source, such as an employer may exempt you from the penalty.
The penalty can be included in your premium cost, so it is important to purchase a Part D plan at a low price when you are qualified. Every open enrollment period gives you the opportunity to move to another plan if you want to get new coverage.