The Medicare Part D late enrollment penalty is added to your Part D premium if you go without creditable drug coverage for 63 or more consecutive days after your Initial Enrollment Period. The penalty is 1% of the national base beneficiary premium for each month without creditable coverage. The penalty is permanent.
Key Points
- Part D late enrollment penalty: 1% per month without creditable coverage
- Penalty is permanent — you pay it for life
- Applies if you go 63+ consecutive days without creditable coverage
- Creditable coverage from employer or union: no penalty
- An independent agent can help you avoid the late enrollment penalty