What is the Penalty for Medicare Part B Late Enrollment

If I do not enroll when I am first eligible, is there a penalty for Medicare Part B?

Yes. You will incur a late enrollment penalty if you delay your Medicare Part B enrollment. For as long as you are participating in Part B, the penalty will remain with you.

How high is the Registration Penalty for Medicare Part B?

The penalty is measured according to how long you have been waiting to enroll in Medicare Part B. You will pay a 10 percent penalty on the regular Part B premium for each 12-month period you delay enrollment before you become eligible. For example:

Your time of initial enrollment ended in December 2016. You waited until March 2019 during the General Enrollment Period to sign up for Medicare Part B. Your coverage commences on July 1, 2019. Your premium penalty for Part B is 20 percent of the regular premium, and as long as you have Part B, you will have to pay this penalty. (Even though a total of 27 months was not covered, this only included 2 complete 12-month periods.)

For as long as you have Medicare Part B coverage, the percentage penalty that is levied at the time of enrollment remains in place. So if your penalty is 20 percent, consider the markup over and above the Medicare Part B regular premium rates for each month afterward as part of your budget.

What Does Medicare Part B Cover?

The Centers for Medicare & Medicaid Services (CMS) states:

Physician services, outpatient hospital services, certain home health services, reliable medical supplies, and certain other medical and health services that are not provided by Medicare Part A are covered by Medicare Part B.

See more info about what Medicare part B of Medicare covers here.

When is the Deadline for Enrollment? 

You are required to sign up during a 7-month timeframe known as the Initial Enrollment Period (IEP) for Medicare Parts A and B: 

• three months before the month when you turn 65 

• The month that you turn 65 

• three months from the month you turn 65

Medicare Parts A and B Compulsory Enrollment (Original Medicare)

Usually, You are automatically enrolled in Original Medicare (Parts A and B) as soon as you are eligible whether you are earning social security benefits before age 65 or a Medicare beneficiary due to a disability.

Special Enrollment Periods (Special Circumstances) Where the penalty can be waived:

If you have not been automatically enrolled in Medicare Part B and your IEP is up if you satisfy any of the following requirements, the Medicare Part B penalty may be waived:

• -You have been covered by an employer under a group health plan.

•  You are covered by your partner or another family member under a group health plan if you are disabled.

We will help if you are not yet enrolled in Original Medicare, need assistance with extra Medicare coverage, or have concerns about any Medicare penalties.

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