Avoid Late Enrollment Penalties

It’s important to sign up for Medicare coverage during your 

Initial Enrollment Period, unless you have other coverage that’s similar in value to Medicare (like from an employer). If you don’t, you may have to pay an extra amount, called a late enrollment penalty.

Late enrollment penalties:

• Are added to your monthly premium.
• Are not a one-time late fee.
• Are usually charged for as long as you have that type of coverage (for most people, that’s a lifetime penalty). The Part A penalty is different.
• Go up the longer you wait to sign up – they’re based on how long you go without coverage similar to Medicare. 

•  Some people have to buy Part A because they don't qualify for premium-free Part A.
• If you have to buy Part A, and you don't buy it when you're first eligible for Medicare, your monthly premium may go up 10%.
• You'll have to pay the penalty for twice the number of years you didn't sign up. 

•   Generally, you won’t have to pay a Part B penalty if you qualify for a Special Enrollment Period. 
•  You’ll pay an extra 10% for each year you could have signed up for Part B, but didn’t.
•  You may also pay a higher premium depending on your income.

• Generally, you won’t have to pay a Part D penalty if:

1. You have creditable drug coverage (coverage that’s similar in value to Part D) OR 
2. You qualify for extra help

• You’ll pay an extra 1% for each month (that’s 12% a year) if you:

1. Don’t join a Medicare drug plan when you first get Medicare.
2. Go 63 days or more without creditable drug coverage.
3.  You may also pay a higher premium depending on your income.

• After you join a Medicare drug plan, the plan will tell you if you have to pay a penalty and what your premium will be.