Medicare
Late Enrollment Penalty
Definition
A late enrollment penalty is a permanent increase to your Medicare premium if you do not sign up for Part B or Part D when you are first eligible and do not have qualifying other coverage.
More Detail
For Part B, the penalty is 10% added to the premium for each full 12-month period you were eligible but not enrolled. This penalty is permanent and added to your monthly premium for as long as you have Part B. For Part D, the penalty is 1% of the national base beneficiary premium multiplied by the number of months you went without creditable coverage.
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