Don't let Medicare penalties cost you thousands. Understanding enrollment deadlines and penalty calculations can save you significant money throughout retirement.
10% per 12-month period
For life!
1% of national base per month
$35.63 in 2025
Special Enrollment Periods
Act quickly!
The Part B penalty is 10% for each full 12-month period you could have had Part B but didn't sign up. This penalty is permanent and added to your monthly premium for life.
per month (unchanged from 2024)
Count the number of full 12-month periods you were eligible but didn't enroll.
Multiply the standard premium by 10% for each penalty period.
The penalty is added to your monthly premium for as long as you have Part B.
Part B penalties compound over time. Here's what a 5-year delay could cost over your lifetime:
Monthly Penalty
Annual Penalty
20-Year Cost
The Part D penalty is 1% of the national base beneficiary premium for each month you go without creditable prescription drug coverage after your Initial Enrollment Period ends.
per month (increased from $34.70 in 2024)
Calculate months without creditable drug coverage after your Initial Enrollment Period.
Multiply $35.63 by 1% for each uncovered month.
The penalty amount is rounded up to the nearest ten cents.
The penalty is added to your monthly premium as long as you have Part D coverage.
You won't owe a penalty if you had creditable drug coverage from:
The penalty amount changes each year because it's based on the national base beneficiary premium, which Medicare adjusts annually.
Understanding enrollment periods and acting within the proper timeframes is the key to avoiding costly Medicare penalties.
7-Month Window
Enroll during the first 3 months to avoid any coverage gaps.
January 1 - March 31
Late enrollment penalties will be added to your monthly premiums.
When Qualifying Events Occur
Usually no penalties if you enroll within 8 months of losing coverage.
Enroll in the first 3 months of your Initial Enrollment Period to ensure coverage starts when you need it and avoid any gaps.
Keep records of any creditable coverage (employer plans, VA, TRICARE) to prove continuous coverage and avoid penalties.
Work with licensed Medicare specialists who understand the rules and can guide you through enrollment without costly mistakes.
If you lose employer coverage or other creditable coverage, you typically have 8 months to enroll without penalties.
During Open Enrollment (Oct 15 - Dec 7), review your plans to ensure they still meet your needs and avoid future penalties.
Create calendar reminders for important Medicare dates, especially if you're delaying enrollment due to employer coverage.
Not signing up because you feel healthy or don't think you need coverage yet.
Retiring or losing job-based coverage without enrolling in Medicare within 8 months.
Thinking COBRA counts as creditable coverage (it usually doesn't for Part D).
Planning to enroll "later" without understanding penalty consequences.
You're still working and have employer health coverage that's primary to Medicare.
You have qualifying government health benefits that count as creditable coverage.
You have union-sponsored health coverage that provides creditable drug coverage.
You enroll during your Initial Enrollment Period or within 8 months of losing coverage.
Medicare penalties can cost you thousands over your lifetime. Our licensed specialists help you enroll correctly and on time, completely free of charge.
No cost to you. We're paid by insurance companies, not by our clients.
Our Medicare specialists are fully licensed and stay current with all rule changes.
Get personalized guidance in just 15 minutes. No pressure, just expert advice.
Missing enrollment deadlines can cost you hundreds or thousands of dollars per year in penalties. Don't wait until it's too late.
We'll review your specific situation, explain all your options, and help you enroll in Medicare without penalties. If you qualify for a Special Enrollment Period, we'll make sure you use it correctly. Our goal is to save you money and give you peace of mind.