Late Enrollment Penalties · Parts A, B & D
Plain English. Five calm steps. No pressure.
Medicare penalties are easy to avoid — and hard to undo. Most last for as long as you have Medicare. Here's how each one works, how much it could cost, and how to stay clear of them.
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Your Penalty Guide
Read them in order, or jump straight to what you need.
Which parts of Medicare have penalties, and why.
How it's figured, and who can safely delay.
The 63-day rule and "creditable" coverage.
See what a penalty could add to your premiums.
How to stay clear — and what to do if you're charged.
Step 1 The Big Picture
Why Medicare Has Penalties
Medicare works best when people join when they're first eligible — not only once they get sick. Penalties encourage on-time sign-up. They're added to your monthly premium, and most never go away.
| How much | How long | |
|---|---|---|
| Part A | 10% added to the Part A premium — only if you pay one | Twice the number of years you went without it |
| Part B | 10% of the standard premium for each full 12 months late | Usually for as long as you have Part B |
| Part D | 1% of the national base premium for each full month without coverage | Usually for as long as you have Part D |
| Medigap | No penalty — but buying later can mean health questions and higher prices | — |
Good news for most people: if you or your spouse worked about 10 years, your Part A is premium-free — and premium-free Part A has no late penalty. See the Part A guide →
If you do pay for Part A and sign up late, your premium goes up 10% for twice the number of years you could have had it. Example: 2 years late means 4 years of the higher premium. With the 2026 full Part A premium of $565 a month, that's about $56.50 more each month.
Step 2 Part B Penalty
The Most Common — and Most Costly
If you don't sign up for Part B when you're first eligible, and you didn't have health coverage from a current job, your premium goes up 10% for each full 12 months you went without it. The penalty is based on each year's standard premium, so the dollar amount grows over time.
Coverage that lets you delay Part B safely — and coverage that doesn't:
Group health coverage from your own or your spouse's current job. You then have 8 months after the job or coverage ends to sign up without a penalty.
Current employmentCOBRA, retiree health plans, Marketplace (ACA) plans and VA health care don't protect you from the Part B penalty.
Common mistakeThe COBRA trap: many people retire, take COBRA, and assume they're covered. But COBRA isn't coverage from current work — so the 8-month Part B window starts when your job ends, not when COBRA does. Read the Part B guide →
Step 3 Part D Penalty
The 63-Day Rule
After your first enrollment window ends, if you go 63 days or more in a row without Part D or other "creditable" drug coverage, a penalty is added when you do join. It's 1% of the national base premium ($41.33 in 2027) for each full month you went without coverage, rounded to the nearest 10¢.
Drug coverage expected to pay, on average, at least as much as standard Medicare drug coverage. Job, union, TRICARE, VA and some other plans often qualify.
Your employer, union or plan must tell you each year whether your drug coverage is creditable. Keep those letters — they're your proof if a penalty is ever charged.
Taking no drugs today? The penalty still applies. Many people choose a low-premium drug plan as protection — so a future prescription doesn't come with a lifelong extra charge. Read the Part D guide →
Step 4 Estimate It
See the Numbers for Yourself
Choose how late you were for Part B and Part D. You'll see what each penalty adds to your premiums — every month, and every year.
Estimate only. Uses the 2026 Part B standard premium ($202.90) and the 2027 Part D national base premium ($41.33, rounded to the nearest 10¢ as Medicare does). Both change every year, so penalties do too. Social Security and Medicare make the final decision.
Step 5 Avoid, Reduce, Appeal
You Have More Options Than You Think
To avoid penalties:
Already have a penalty? Ways it can be reduced or removed:
If you qualify for Extra Help with drug costs, you don't pay the Part D penalty. Apply through Social Security.
If your state pays your Part B premium through one of these programs, the Part B penalty no longer applies. Contact your state Medicaid office.
If you're under 65 with a disability and have a Part B penalty, it ends when you turn 65 and get a new enrollment window.
If you think a Part D penalty is wrong — for example, you had creditable coverage — you can ask for a "reconsideration." Use the form in your plan's penalty letter. You generally have 60 days from the date on the letter.
Act within 60 daysContact Social Security and ask for a reconsideration if you believe you had qualifying coverage, or that a government employee gave you wrong information about when to sign up.
Through Social SecurityNeed help with an appeal? Your State Health Insurance Assistance Program (SHIP) offers free, one-on-one help. You can also call 1-800-MEDICARE (TTY 1-877-486-2048), 24 hours a day.
Ready to enroll on time? Choose your state to compare plans and enroll yourself:
When and how to sign up. Part A guide →
Part B guide →
How drug plans work, and the 2027 costs. Part D guide →
Your penalty-free windows after life changes. SEP guide →
No pressure · No sales calls · Your choice, your pace
Common Questions
Usually not. The Part B and Part D penalties generally last for as long as you have that coverage. The Part A penalty lasts twice the number of years you were late. Some programs, like Extra Help and Medicare Savings Programs, can remove or cover a penalty.
Your monthly premium goes up 10% for each full 12-month period you could have had Part B but didn't, unless you had coverage from current work. The 10% is figured on each year's standard premium, so the dollar amount changes yearly.
Medicare multiplies 1% of the national base beneficiary premium ($41.33 in 2027) by the number of full months you went without Part D or creditable coverage, then rounds to the nearest 10¢. It applies after a gap of 63 days or more in a row.
No. Only group health coverage based on current employment lets you delay Part B without a penalty. COBRA and retiree plans don't count — though they may count as creditable drug coverage for Part D.
No. But if you buy Medigap after your 6-month Medigap Open Enrollment Period, most states let companies ask health questions and charge more or decline you.
Yes. For Part D, ask for a reconsideration using the form in your penalty letter, generally within 60 days. For Part B, contact Social Security. Free help is available from your State Health Insurance Assistance Program (SHIP).
Still have a question? Just ask.
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