Medicare Late Enrollment Penalties: What They Are and How to Avoid Them
Missing your Medicare enrollment window can cost you — not just in stress, but in real money. Medicare has several late enrollment penalties that can stick with you for life. They’re not one-time fees. They’re monthly surcharges added to your premium for as long as you have that part of Medicare.
Introduction
The good news is, most of these penalties are easy to avoid if you understand the rules and act early.
In this article, we’ll break down the three main late enrollment penalties, who they apply to, and what you can do to make sure you’re protected.
Medicare Enrollment Periods
Enter your birthdate to see when you can enroll in Medicare and Medigap.
Part B Late Enrollment Penalty
If you don’t sign up for Medicare Part B when you’re first eligible and don’t qualify for a Special Enrollment Period, you’ll face a penalty.
Your Part B premium increases by 10% for every 12-month period you were eligible but didn’t enroll. This penalty is added to your monthly premium for life.
This usually happens when someone delays enrolling because they feel healthy or didn’t realize their employer coverage wasn’t creditable. It also happens if someone misses their Initial Enrollment Period and doesn’t qualify for a special enrollment window.
Part B Penalty Estimator
Part D Late Enrollment Penalty
If you don’t have creditable prescription drug coverage when you’re first eligible for Medicare and you wait more than 63 days to get it, you’ll face a penalty.
The penalty is 1% of the national base premium for each full month you didn’t have drug coverage. In 2025, the base premium is around $35, so if you go 12 months without coverage, that’s about a 12% monthly surcharge added to your drug plan permanently.
This often happens when people think they don’t need a Part D plan because they’re not taking medications. But if you’re eligible for Medicare and don’t have other creditable drug coverage, you still need a plan to avoid this fee.
Part D Penalty Estimator
How to Avoid Late Enrollment Penalties
- Enroll during your Initial Enrollment Period (IEP): This is the 7-month window around your 65th birthday (3 months before, the month of, and 3 months after).
- If you’re still working, make sure your coverage is creditable: Employer coverage can delay the need for Part B and Part D, but it must meet Medicare’s standards. Not all plans do.
- Keep records of your prior coverage: If you delay enrollment due to employer coverage, make sure to get proof from your employer showing your coverage was creditable.
- Consider enrolling in a $0 premium Part D plan: Even if you’re not taking medications, this keeps you penalty-free and protects against future costs.
Need Help Timing Your Enrollment?
If you’re unsure when you should enroll or whether your current coverage qualifies, don’t guess. We’ll walk you through the exact deadlines and make sure you’re protected from unnecessary penalties.
We’ve helped hundreds of people avoid costly mistakes, and we’d be happy to do the same for you.