Late Enrollment Penalties

If you do not sign up for Medicare when you are first eligible — and you do not have other coverage that counts (called "creditable" coverage) — you may face a late enrollment penalty. This penalty is added to your monthly premium, and in most cases it lasts for as long as you keep that coverage.

Part B late enrollment penalty:

• Your monthly Part B premium may go up about 10% for each full 12-month period you could have had Part B but did not sign up.
• In most cases, this higher amount lasts for as long as you have Part B.

Part D (prescription drug) late enrollment penalty:

• May apply if you go 63 days or more in a row without Part D or other creditable drug coverage after your Initial Enrollment Period.
• The amount is based on how many full months you went without coverage and the national base beneficiary premium, which can change each year.

Part A late enrollment penalty:

• Most people get premium-free Part A and do not face this penalty.
• If you have to buy Part A and sign up late, the premium may be higher for a limited time.

How these penalties are usually avoided:

• Signing up during your Initial Enrollment Period (generally around the month you turn 65), or
• Keeping creditable coverage (such as qualifying employer coverage) and enrolling during a valid Special Enrollment Period.

Note: This is general educational information, not a determination about your situation. Penalty rules and amounts are set by Medicare and can change. Always verify with Medicare (1-800-MEDICARE), Social Security, or a licensed advisor before making a decision.