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Part D Late Enrollment Penalty

Part D Medicare Made Easy

Part D Late Enrollment Penalty

The late enrollment penalty is an amount added to your Medicare Part D monthly premium.

You may owe a late enrollment penalty if, for any continuous period of 63 days or more after your Initial Enrollment Period is over, you go without one of these:

A Medicare Prescription Drug Plan (Part D)

A Medicare Advantage Plan (Part C) (like an HMO or PPO)

Another Medicare health plan that offers Medicare prescription drug coverage

Creditable prescription drug coverage

How Much is the Part D Penalty in 2022?

The cost of the late enrollment penalty depends on how long you went without Part D or creditable prescription drug coverage.

Medicare calculates the penalty by multiplying 1% of the “national base beneficiary premium” ($33.37 in 2022) times the number of full, uncovered months you didn’t have Part D or creditable coverage. The monthly premium is rounded to the nearest $.10 and added to your monthly Part D premium.

How do you calculate your premium penalty?

Let’s say you delayed enrollment in Part D for seven months (and you do not meet any of the exceptions listed above). Your monthly premium would be 7% higher for as long as you have Part D (7 months x 1%). The national base beneficiary premium in 2022 is $33.37 a month. Your monthly premium penalty would therefore be $2.31 ($33.37 x 1% = $0.3337 x 7 = $2.34) per month, which you would pay in addition to your plan’s premium.

Note: The Part D penalty is always calculated using the national base beneficiary premium. Your penalty will not decrease if you enroll in a Part D plan with a lower premium.

Learn How Medicare Works Here

Need help? Call us for an appointment at (817) 952-3153

Ashford Insurance is an independent health insurance agency specializing in Texas Medicare insurance and has been helping seniors since 2005.  Ashford Insurance is here to help you understand Medicare and health insurance in simple, plain terms that anyone can grasp.  We specialize in assisting folks who are Medicare eligible to learn about the coverage options available through the Medicare Health Insurance Program. 

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