What Your Clients Want To Know About Medicare Late Enrollment Penalties

Medicare is essential for many seniors, but missing enrollment deadlines can lead to costly penalties.

Here’s a quick guide to avoid these fees.

Medicare Late Enrollment Penalties are charges that beneficiaries may face if they don’t sign up for Medicare when first eligible. These penalties can apply to Medicare Part A, Part B, and Part D, potentially leading to higher premiums for the rest of their life.

For Part A, which covers hospital services, the penalty applies if your client doesn’t qualify for premium-free Part A and fails to sign up during the Initial Enrollment Period (IEP). The penalty: the client will pay an extra 10% on the Part A premium for twice the number of years your client could have signed up but didn’t.

The Part B penalty can be more significant. If your client delays signing up for Part B, which covers doctor visits and outpatient care, your client could pay an additional 10% on Part B premiums for each 12-month period the client was eligible but didn’t enroll.

Finally, Part D, which covers prescription drugs, carries a penalty if the client goes 63 or more days without credible drug coverage. The penalty is calculated by multiplying 1% of the “national base beneficiary premium” ($34.70 in 2024) by the number of months the client went without coverage.

Understanding these penalties and how to avoid them can save your money and ensure that timely Medicare coverage happens when needed.

If you want Medicare-certified assistance with a client, reach out to Dan Griset at CPS Insurance Services: dgriset@cpsinsurance.com or call (949) 225-7144.  Your client will be glad you helped at the right time!