You could be subject to costly and lengthy penalties if you fail to sign up for Medicare in the initial enrollment period. These penalties can be permanent and last as long as you are receiving Medicare benefits.
Each part of Medicare has its own rules about when penalties can be applied, what the penalty is and how long it will take to pay.
What you need to know regarding late enrollment penalties for Medicare Parts A, B and D?
Medicare Part A late enrollment penalty
People don’t have to pay premiums for Medicare Part A so they don’t need to worry about late enrollment penalties. Late sign-up penalties may apply to those who aren’t eligible for premium-free Part A.
You will be penalized if you have to pay premiums Medicare Part A if you don’t sign up during the initial enrollment period. This penalty is added 10% to your monthly Part A premium (
$56 per month in 2023
It lasts twice as long as the one you had without signing up
.
If you don’t sign up for Medicare Part A for at least two years, then you will owe an additional penalty amount for the fourth year. The penalty will add $50 each month to your monthly bill in 2023. The penalty and Part A premium could increase or decrease in later years.
Medicare Part A penalty calculator
Calculate your Medicare Part A late enrollment penalty
Medicare Part B late enrollment penalty
For every full year you could have signed-up for Medicare Part B but didn’t, the Medicare Part B late enrollment penalty increases your Medicare Part B premium by 10%
. Permanent penalty: The extra amount will be paid for as long you have Medicare Part B.
Medicare Part B penalty calculator
Calculate your Medicare Part B late enrollment penalty
Medicare Part D late enrollment penalty
You can’t go on too long without.
Medicare Part D
Prescription drug coverage, or any other prescription drug coverage, that is at least as good after the initial enrollment period ends, will generally result in permanent penalties to your Medicare Part D premium.
.
For each month that you were without qualifying prescription drug coverage, the Medicare Part D late enroll penalty is 1% of your national base beneficiary premium ($32.74/month in 2023) to Medicare Part D premium.
If you go without qualifying coverage for 24 consecutive months, your penalty is 24% of the national beneficiary premium. The 24% of $32.74 will result in an additional $7.90 per month for 2023 (rounded up to the nearest 10 Cents span>
Medicare Part D penalty calculator
Calculate your Medicare Part D late enrollment penalty