Understanding Medicare Enrollment Penalties

Missing a deadline could cost you — permanently.

Medicare has a few important enrollment periods. Miss one, and you might pay more every month for life. The good news? You can avoid these Medicare enrollment penalties if you know how the rules work.

Medicare Part B Late Enrollment Penalty

What is it? If you don’t enroll in Medicare Part B (medical insurance) when you’re first eligible and don’t have other creditable coverage, you’ll face a monthly penalty. This is one of the most common reasons people end up paying more.

How much is it? 10% of the standard Part B premium for each full 12-month period you went without coverage. This penalty lasts for life.

• Example: Delay Part B by 2 years → 20% added to your premium permanently. That’s a serious penalty for not signing up at age 65.

• How to avoid it: Enroll during your Initial Enrollment Period (IEP) — a 7-month window around your 65th birthday. Or delay safely if you have active job-based coverage. Once that ends, you get an 8-month Special Enrollment Period (SEP) to avoid a penalty for signing up late.

Medicare Part D Late Enrollment Penalty

What is it? If you go more than 63 days without creditable drug coverage after you’re first eligible, you’ll pay a Medicare drug plan penalty when you finally sign up.

How much is it? 1% of the national base premium (about $34.70 in 2024), multiplied by the number of months you went without coverage. This penalty is added to your monthly premium — for life.

• Example: 10 months without drug coverage → 10% of $34.70 = $3.47/month, permanently.

• How to avoid it: Sign up for Part D during your IEP or keep other creditable drug coverage (like VA, Tricare, or employer plans). If you lose that coverage, you usually have 63 days to avoid the penalty.

Why This Matters

Penalties may seem small monthly but add up over time — and they last as long as you have Medicare. The key to avoiding them is simply knowing your deadlines so you don’t pay more than necessary for your coverage.

We’re Here to Help

Call 1-855-890-2583 to talk with an Education Specialist about avoiding Medicare enrollment penalties.