Don’t get stuck with a late enrollment penalty.
There are consequences for not enrolling into plans when you become eligible. These can be confusing to understand, so let’s take a look at the main two types of penalties that way you can be sure you aren’t paying more than you should be.
Late Enrollment Penalties
For each 12-month period you delay enrolling in Part B, you will incur a 10% penalty. This means an additional 10% of the standard monthly premium will be added to your Part B premium. For example, if you delay for two years, you would pay an extra 20% per month. This penalty remains in effect for as long as you have Part B coverage.
Part B Late Enrollment Penalty
Part D Late Enrollment Penalty
The Part D penalty is determined by the number of full months you went without prescription drug coverage, even if you weren't taking any medications. This penalty is common because many people mistakenly believe they don't need to enroll in a Part D plan if they aren't using prescription drugs. To avoid this penalty, you can enroll in a low-cost Part D plan even if you don't currently need medications.
The Part D penalty is calculated by taking 1% of the national base beneficiary premium and multiplying it by the number of months you were without coverage. Since the base premium changes annually, your penalty amount will also vary each year. Similar to the Part B penalty, the Part D penalty lasts as long as you have a Part D plan.
It's crucial not to delay your Medicare enrollment. If your 65th birthday is approaching in a year or two, now is the ideal time to start planning. Call us today to discuss your options so you can enter into your golden years with confidence!