The Medicare Part D penalty is a 1% increase on the Part D premium for each full uncovered month you were eligible for Part D and did not enroll. The penalty is permanent and must always be paid while you have Part D.
The penalty is calculated by multiplying 1% of the “national base beneficiary premium” ($32.74 in 2023) by the number of full, uncovered months you didn’t have Part D or creditable prescription drug coverage. The monthly premium is rounded to the nearest $. 10 and added to your monthly Part D premium. Since the “national base beneficiary premium” may increase each year, the penalty amount may also increase each year.
There are a few ways to avoid the Part D penalty:
- Sign up for a Medicare Part D plan during your initial enrollment period.
- Sign up for a Medicare Part D plan during the general enrollment period.
- Sign up for a Medicare Part D plan during a special enrollment period.
- Be eligible for a special enrollment period because you lost your employer-sponsored health insurance.
If you are unsure whether you are eligible for a special enrollment period, you can contact Ashford Insurance at 817-952-3153.
Photo by Andrea Piacquadio
