Part D Late Enrollment Penalty

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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” ($33.19 in 2019 and $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.

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Wayne Alumbaugh

Upon completing a tour in the US Air Force (196-1970) and a career in the Railroad Industry as a Switchman, Brakeman, Conductor, Fireman, and Locomotive Engineer (1971-2006) I felt the desire to follow in my father’s footsteps and enter the Medicare insurance industry.

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