What Is the Medicare Part D Late Enrollment Penalty?
The Part D penalty is 1% of the national base premium for each full month you went without creditable drug coverage after your initial enrollment period. Like the Part B penalty, it's permanent.
Frequently Asked Questions
- What is creditable drug coverage?
- Creditable coverage is drug coverage that is expected to pay at least as much as Medicare's standard Part D plan. Your plan must notify you annually whether your coverage is creditable.
- How much does the penalty cost?
- The penalty is 1% of the national base beneficiary premium per uncovered month. For example, 24 months without coverage means a 24% surcharge on your Part D premium.
- Can employer drug coverage count as creditable?
- Yes. Many employer drug plans are creditable. Your employer or plan is required to tell you whether your coverage is considered creditable.