What is the Part D Late Enrollment Penalty?
The late enrollment penalty is an amount that is added to your Part D premium (for as long as you have Medicare drug coverage) if all of the following are true: • You don’t join a Medicare drug plan when you’re first eligible. • You don’t have other creditable prescription drug coverage. • You later decide to join a Medicare drug plan. Here are a Few Ways to Avoid Paying a Penalty: • Join a Medicare drug plan when you’re first eligible. You won’t have to pay a penalty, even if you’ve never had prescription drug coverage before. • Don’t go for more than 63 days without a Medicare drug plan or other creditable coverage. Creditable coverage could include drug coverage from a former employer or union, TRICARE, or the Department of Veterans Affairs. (You should get a notice every year telling you whether the drug coverage you have is creditable coverage. Keep this notice, because you may need it if you join a Medicare drug plan later.) • Let your Medicare drug plan know if you have other cr
