Medicare late enrollment penalty, explained
The Part B and Part D penalties are permanent. Here is when they trigger and the simplest ways to avoid them.
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Part B late penalty
If you do not sign up for Part B when you are first eligible, and you do not have other "creditable" coverage (like an employer plan that meets the requirement), you can be charged a 10% premium increase for every 12 months you went without it — for as long as you have Part B.
That is permanent. There is no expiration.
Our Turning 65 timeline shows when to enroll. If you have employer coverage past 65, see "creditable coverage" below.
Part D late penalty
If you go more than 63 days without "creditable" drug coverage after you are first eligible for Part D, you pay a 1% of the national base premium for every month you went without it — added to your Part D premium for life.
It applies even if you take no medications today. See our prescription coverage guide.
What "creditable coverage" means
Coverage that is at least as good as Medicare standard. Examples that usually count:
- Employer group health plan (verify with the plan administrator)
- VA health benefits
- TRICARE
- Federal Employee Health Benefits (FEHB)
Always get the "Notice of Creditable Coverage" letter from your current insurer in writing. Keep it for life.
Related guides
More plain-language guides from Senior Plan Path.