Medicare Late Enrollment Penalties

How much are Medicare late enrollment penalties?

Medicare beneficiaries pay penalties for late Medicare enrollment. These late enrollment penalties were introduced to deter people from enrolling late in Medicare. If you experience a terrible health event or a change in a medical condition but aren’t covered by Medicare, you’ll not have health insurance to help you pay for these costs.

For this reason, you are required to enroll for Medicare at specific times. Medicare penalties vary based on the part of Medicare for which you enroll late and the length of time you didn’t have coverage. The penalty fees you pay for each part of Medicare include:

Medicare Part A

If you or your spouse worked for ten years, or forty quarters, paying Medicare taxes, you’d receive Medicare Part A without paying a monthly premium. However, if you are not automatically enrolled in this plan, you will have to pay the premium. If you register for Part A after your Initial Enrollment Period (IEP), you may have to pay a late Medicare enrollment penalty.

As for the late enrollment penalty for Medicare Part A, your premium will be increased for a period of twice the amount of time you went without Part A while you were eligible. For instance, if you delay your Part A enrollment for a whole year, your penalties will last for two years.

Medicare Part B Penalty

If you are not automatically enrolled in Part B and don’t sign up when you are first eligible, you can be subject to a late penalty. You will have to pay the penalty for as long as you have the plan. The late enrollment penalty could go up to ten percent for every 12-month period you were eligible for the plan but didn’t sign up. For instance, if you waited for two years before enrolling in the Medicare Part B plan, you’ll be required to pay 20 percent of your premium. 

Medicare Part D Penalty

The late enrollment penalty for Medicare Part D is 1% of the members’ average monthly premium, multiplied by the number of late months you didn’t sign up. The Part D penalty starts if the beneficiary didn’t enroll within the first three months their Original Medicare plan becomes active. It is important to keep in mind that this penalty is permanent.

Consult with experienced and reputable Medicare insurance experts like Turning 65 Solutions to ensure you sign up for Medicare when you are supposed to and reduce penalty risks.

Turning 65 Solutions can help you plan for the future.