Individuals who do not sign up for Medicare Part D when they first become eligible must pay a penalty, which is added to their monthly premium for the entire time that they are enrolled in a plan. In addition, after their Initial Enrollment Period, individuals can only sign up for a plan during the Medicare Annual Election Period (November 15 through December 31).
The late-enrollment penalty is calculated at 1 percent per month for each month of delay. It is based on a national average of monthly premiums for the coverage year. So, for example, someone who enrolled 7 months late would use the following calculation:
1% X national average X number of months of delay = monthly penalty
For more information about enrolling in a plan, see I am new to Part D.
Your Guide to Part D:
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General Part D Information
Learn about the Medicare Part D benefit:
- What is Medicare Part D?
- Who is eligible for Medicare Part D?
- What are the different Medicare Part D plan options?
- How can I save more and delay the Coverage Gap longer?
- What do I need to know about prescription safety?
- Where can I find other useful resources?
My Current Situation
Get information for your specific circumstances:
