How to Avoid Medicare Late Enrollment Penalties

People 65 and older, as well as younger people who meet specific criteria, may enroll in Medicare, a federal health insurance program. Medicare can assist enrollees in covering vital health care needs and significant medical costs. However, enrollment, plan changes or cancellations are only allowed during specific periods. Missing these enrollment windows could lead to expensive consequences.

What Are Medicare Late Enrollment Penalties?

If you are late enrolling for Medicare Part A, Part B or Part D, and don’t qualify for a Special Enrollment Period, you may have to pay a penalty on your premium. The following are the typical penalties for late enrollment for each type of coverage:

• Medicare Part A—If you pay a premium, the penalty is typically 10% and will be charged twice the number of years you delay enrollment.

• Medicare Part B—The penalty for Part B is typically 10% for each 12-month period that you delay enrollment. In most cases, you have to pay the penalty each month as long as you have Part B. If you’re under 64 and disabled, the penalty ends once you turn 65.

• Medicare Part D—The penalty is typically 1% of the average Part D premium for each month (or 12% for the year) if you don’t join a Medicare drug plan when you first get Medicare. You pay the penalty for as long as you’re enrolled in Part D.

How Do I Avoid Late Enrollment Penalties?

The following tips can help you avoid late enrollment penalties:

1. Enroll during your Initial Enrollment Period. This is a seven-month window that usually starts three months prior to the month you turn 65 and continues until three months after.
2. If you qualify for a Special Enrollment Period, make sure your employer coverage is considered creditable for both Parts B and Part D. You may be eligible for a special enrollment period if you lose your other health care outside of the initial and general enrollment periods.
3. Get written coverage to provide proof you have creditable prescription drug coverage.
4. Enroll in Medicare Part D within the first two months of your Special Enrollment Period if you are qualified for one.

Learn More

For Medicare guidance near you, contact Insurance Solutions USA.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.