Steer Clear of Medicare Part D Penalties
Navigating the world of Medicare penalties can be a challenge. M3 Elevate, a division of M3 Insurance, partners with Medicare individuals to help guide them through precautionary measures to avoid penalties and ensure proper coverage.
When it comes to drug coverages for those who qualify for Medicare, it’s recommended that individuals 65+ have some form of drug coverage through Medicare Part D or employer coverage due to the high out-of-pocket drug costs. Check out a breakdown of different scenarios based on your current drug coverages to determine if Medicare Part D is right for you.
With the recent spike in questions around Medicare Part D penalties, M3 Elevate has pulled together key information on how to avoid Medicare Part D penalties and how penalties are calculated.
Twice a month, M3 Elevate leads on Medicare Education Sessions. These events are complimentary and intended for educational purposes. Register for any one of these events, from now through September, and get your Medicare questions answered.
So, How Much is a Late Enrollment Penalty
The fee for a late enrollment penalty depends on how long you didn’t have access to creditable prescription drug coverage. These penalties typically last the entire length of your Medicare drug coverage.
- As of 2022, the late enrollment penalty fee is calculated by multiplying 1% of the “national base beneficiary premium” ($33.37 in 2022) by the number uncovered months that you were eligible but didn’t enroll in Medicare drug coverage OR creditable prescription drug coverage.
The grand total is rounded to the nearest $.10 and added to your monthly premium bill. Note: The “national base beneficiary premium” and the penalty amount may increase each year. After you complete the enrollment process for Medicare drug coverage (Part D), your plan will inform you of any penalties and premium.
M3 Elevate has a team of Medicare experts who understand what it takes to avoid the complicated Medicare Part D penalties. Please share any questions you may have with our M3 Elevate team. In general, Medicare penalties last for as long as you have a Medicare drug plan. Be sure you know understand your Medicare enrollment timeline to avoid these permanent penalties.
- Individuals who enroll in Medicare drug coverage when you are first eligible can prevent penalties
- If an individual loses creditable coverage, they must enroll in Medicare drug coverage within 63 days in order to prevent penalties
- Individuals must inform their Medicare plan about previous creditable prescription drug coverage to avoid paying a potential penalty for the remainder of your Medicare enrollment
*This information was pulled from Medicare.gov to provide readers with action steps to avoid Medicare Part D penalties.