Part B Late Enrollment Penalty

Medicare Part B Late Enrollment Penalty

Contrary to Part A coverage, Part B (medical insurance) has a premium requirement. Everyone must pay a monthly fee for Part B. If you qualify for financial aid via your state government, then the state might cover this cost for you.

The premium penalties for not enrolling in and paying the Part B premium during the proper enrollment period is 10% of the Part B premium due for every full year you missed, paid each month for the rest of your life.

Just like with Medicare Part A, if you qualify for a Special Enrollment Period, then chances are the Part B penalty will be waived.

If you have creditable coverage over age 65, you can choose when to enroll in Part B, creating your own personal Special Enrollment Period.

If you qualify for a Special Enrollment Period, there will be no Part B Penalty. Simply choose the month you wish your Part B to start, and that will be your Special Enrollment Period.

Example:

If you waited 2 full years (24 months) to sign up for Part B and didn’t qualify for a Special Enrollment Period, you’ll have to pay a 20% late enrollment penalty (10% for each full 12-month period that you could have signed up), plus the standard Part B monthly premium ($164.90 in 2023).

$164.90 (2023 Part B standard premium)
+ $32.98 (20% [of $164.90] late enrollment penalty)

$197.90 will be your Part B monthly premium for 2023. This amount ($197.88) is rounded to the nearest $.10 and includes the late enrollment penalty.

Learn How Medicare Works Here