Penalties

This is a very common question. Medicare late enrollment penalties can catch some people by surprise. Maybe you forgot to enroll during your Initial Enrollment Period. Maybe you delayed your coverage because you were still working past 65 but did not have creditable coverage or don't qualify for a Special Enrollment Period. Since you could face late enrollment penalties for Medicare Part A, Part B and Part D, it’s important to know how to avoid them. Check out which parts of Medicare have late enrollment penalties and how each one works.

If you have to pay a premium (most people don't because they paid into Medicare while working), the penalty is 10% and applied for twice the number of years you delay enrollment.

The penalty for Part B is 10% for each 12-month period you could've signed up but didn't. You have to pay the penalty every month for as long as you have Part B in most cases. If you’re under 65 and disabled, the penalty ends once you turn 65 and you’ll have another Initial Enrollment Period based on your age.

The penalty is 1% of the average Part D premium for each month you delay enrollment. If you go more than 63 days in a row without creditable coverage you'll have to pay this premium in most cases. You pay the penalty for as long as you’re enrolled in Part D.