Do You Know the Medicare 3 Late Enrollment Penalties?

 

Are you paying a penality?

Part A (Hospital Insurance):

• Generally, there is no late enrollment penalty for Part A.
• However, if you delay enrollment and don't have other qualifying coverage, you may have to pay a higher monthly premium when you do enroll

You will NOT pay a penalty for delaying Part A, as long as you enroll within 8 months of losing your coverage or stopping work (whichever happens first). Part B: You can delay Part B until you (or your spouse) stop working or lose that employer coverage.

Part B Late Enrollment Penalty:

• Applies if you delay enrolling in Medicare Part B (medical insurance) after your Initial Enrollment Period (IEP).
• Penalty: A permanent increase in your monthly Part B premium.
• Calculation: 10% for each 12-month period you delayed enrollment, up to a maximum of 75% added to your base premium.

Part D penalty, also called a late enrollment penalty (LEP), is a monthly surcharge added to your Part D premium if you enroll late. You can avoid this penalty by enrolling in a Part D plan during your Initial Enrollment Period (IEP).

Here's how the penalty works:

• Penalty amount: 1% of the national base beneficiary premium for each full month you go without Part D or other qualifying coverage after your IEP ends. (The national base beneficiary premium is $34.70 in 2024, but this amount can change yearly.)
• Calculation: Multiply 1% by the number of uncovered months, then round to the nearest $0.10. This amount is added to your monthly Part D premium for as long as you have coverage. To learn more Click Here and a licensed agent will be in contact