The Medicare Part B penalty is a 10% increase on the Part B premium for each full 12-month period not enrolled but eligible. This is a lifelong penalty. If eligible for a Special Enrollment Period – enrolled in employer coverage, this penalty can be avoided.
The penalty is generally enacted if not enrolled within 3 months of Medicare Part A or Part B. The penalty is permanent and must always be paid while enrolled in Part D.
If you are assessed a Part B penalty, you will have to pay it for as long as you have Medicare Part B. The penalty is added to your monthly Part B premium.
There are a few ways to avoid the Part B penalty:
- Sign up for Medicare Part B during your initial enrollment period.
- Sign up for Medicare Part B during the general enrollment period.
- Sign up for Medicare Part B during a special enrollment period.
- Be enrolled in employer-sponsored health insurance that qualifies for the special enrollment period.
If you are unsure whether you are eligible for a special enrollment period, you can contact Ashford Insurance at 817-952-3153.
Photo by Reem Mansour