Avoid Penalties Master Medicare Part D Enrollment Tactics
Calculating the Penalty
The late enrollment penalty is calculated by multiplying 1% of the "national base beneficiary premium" ($32.74 in 2023) by the number of full, uncovered months you were eligible but didn't join a Medicare drug plan. This penalty is added to your monthly premium for as long as you have Part D2.
Strategies to Avoid Penalties
To avoid these penalties, it's crucial to enroll in a Part D plan as soon as you're eligible. If you have other creditable prescription drug coverage, such as through an employer, ensure it meets Medicare's standards to avoid penalties. Additionally, special enrollment periods are available if you lose your creditable coverage, allowing you to join a Part D plan without incurring a penalty3.