How Your Medicare Part D Late-Enrollment Penalty Is Calculated

Checkout detail guide of Late Enrollment Penalty for Medicare Part D. Medicare part D is a prescription drug coverage that you can enroll in along with your other medicare plan. If you don’t enroll yourself for Medicare part D on time, you have to pay a charge as a penalty with your monthly premium

Here we can see that how the late enrollment penalty is counted for medicare part D:-

  • If you enroll yourself for another plan of medicare but you don’t enroll yourself for plan D in the initial enrollment period then you have to pay a penalty for the late enrollment. You get a time period of 63 days or more days in a row after the initial enrollment period is over. 
  • Prescription drugs plan calculates the full month of when you are eligible for the plan but don’t enroll for it and its cost depends on how long you have been without its coverage
  • Medicare calculates their penalty by 1% of their national base beneficiary premium which is $33.06 in this year 2021. It is multiple by the number of the month in which you are under covered by the plan. 
  • The monthly premium is around $0.10 that will be credited with your monthly Medicare plan D premium. 

As an example of the late enrollment penalty, Luna doesn’t have her drug coverage from July 2017- January 2019. Let’s calculate her late enrollment penalty in 2021. The math is:-

$0.31(number of months that she doesn’t have drug coverage)× $33.06(national base beneficiary premium) =$10.25

For the convenience of calculation who takes any round number within the nearest $ .10 that is $10.30

So that $10.30 is the penalty of Luna which is credited with her premium. 

To get rid of any kind of late enrollment penalty make sure that you sign-up at the right time.