Ashford Insurance

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 2020?

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” ($32.74 in 2020) 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.

Here’s the math:

.31 (31% penalty) × $32.74 (2020 base beneficiary premium) = $10.15

$10.15 rounded to the nearest $0.10 = $10.20

So, $10.20 x (number of months without creditable coverage) = How much will be deducted from your Social Security payment each month.

The national base beneficiary premium may increase each year, so your penalty amount may also increase each year.

Learn How Medicare Works Here

Sarah began working in the healthcare industry in 2001, where she worked for many years with elderly Alzheimer and Dementia patients. From there she worked as a Group Benefits Administrator with a local healthcare company in the Human Resource Department for a period of 10 years. Since then, she has decided to work in the Medicare insurance industry full time and has joined the family business, Ashford Insurance, as a Medicare Insurance Agent.

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

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(817) 952-3153

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Weekends & Evenings by Appointment

Address 1245 Southridge Court Suite 101, Hurst, TX, 76053

Email Sonia@ashfordinsurancegroup.com

* A licensed sales agent may call or e-mail as a result of completing the information to discuss Medicare Advantage, Prescription Drug Plans or Medicare Supplement Insurance.