What Is the Medicare Part D Penalty?

The penalty also applies if you drop your Medicare Part D plan and go without prescription drug coverage for too long.

Here’s what you need to know about the Medicare Part D late enrollment penalty and how to avoid it.

Who has to pay the Medicare Part D late enrollment penalty?

You’ll start to owe a late enrollment penalty if you go at least 63 days without sufficient prescription drug coverage after the end of your initial Medicare enrollment period (when you’re first eligible for Medicare).

The initial enrollment period lasts for seven months around your 65th birthday: the three months before your birthday month, your birthday month and the three months after.

Your best bet to avoid the penalty is to sign up for Medicare Part D or a Medicare Advantage plan with prescription drug coverage during your initial enrollment period and stay enrolled consistently afterward.

How much is the Medicare Part D late enrollment penalty?

Your Medicare Part D late enrollment penalty gets higher…

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This article was written by Alex Rosenberg and originally published on www.nerdwallet.com