How to Avoid Lifetime Penalties
Late-enrollment penalties last forever. Here's how to prevent them.
Part B late-enrollment penalty
10% of the standard Part B premium for each full 12-month period you were eligible and didn't enroll. The penalty is added to your monthly premium for as long as you have Part B — which, for most people, is the rest of their life.
Part D late-enrollment penalty
About 1% of the national base beneficiary premium for each full month you went without creditable prescription drug coverage after your Initial Enrollment Period. Even people who take no medications should enroll in a low-cost Part D plan to avoid this penalty.
Part A penalty (rare)
Only applies to people who have to pay a premium for Part A (people who didn't earn 40 quarters of work credits). The penalty is 10% of the Part A premium, applied for twice the number of years you delayed enrollment.
What counts as creditable coverage
For Part B: current employer coverage from a company with 20+ employees while you or your spouse are actively working. For Part D: coverage from a plan that Medicare has determined pays, on average, at least as much as standard Part D. Ask the plan administrator for a written creditable-coverage notice — save it.
What doesn't count
COBRA, retiree health plans, VA benefits, TRICARE (for delaying Part B), and individual marketplace plans generally do not protect you from Medicare late-enrollment penalties. Assuming they do is one of the most costly Medicare mistakes.
How to fix a missed window
You may qualify for a Special Enrollment Period if you had qualifying coverage, or you'll need to wait for the General Enrollment Period (Jan 1 – Mar 31). Either way, if you owe penalties, enroll as soon as possible — every additional month you wait can add to what you'll pay for life.