How Does the Part D Late Enrollment Penalty Work?

The penalty is 1% of the national base premium ($36.78 in 2025) for each month you were eligible but didn’t enroll.

This amount is added to your monthly Part D premium for life.

The longer you go without coverage, the higher your penalty.

Example of the Penalty

• If you go 20 monthswithout Part D or other creditable drug coverage:
  • 20 months × 1% = 20% penalty
  • 20% of $36.78= $7.356 per month
  • This penalty is added to your Part D premium every monthfor as long as you have Medicare.

How to Avoid the Penalty

✅ Enroll in a Medicare Part D plan during your Initial Enrollment Period (7 months around your 65th birthday).
✅ Stay on a creditable drug plan (like employer or VA drug coverage).
✅ If you lose creditable coverage, sign up for Part D within 63 days to avoid penalties.