What is the penalty for delaying Medicare Part D?


Editorial team Published on

The Medicare Part D late enrollment penalty is a permanent monthly fee added to your prescription drug plan premium if you go 63 days or more without Part D or other creditable prescription drug coverage.

How It Works

  • Cost formula: The penalty equals 1% of the national base beneficiary premium multiplied by the number of full, uncovered months you went without coverage.
  • 2026 Rate: The national base beneficiary premium is $38.99 per month for 2026.
  • Rounding: The final calculated penalty amount is rounded to the nearest $0.10 and added to your monthly bill.
  • Duration: You pay this extra amount for as long as you have Medicare drug coverage, and the penalty can change each year as the base premium updates.

How to Avoid the Penalty

  • Enroll on time: Sign up during your Initial Enrollment Period (the 7-month window around your 65th birthday).
  • Keep creditable coverage: Maintain prescription drug coverage from an employer, union, or other source that meets Medicare's standards.
  • Qualify for Extra Help: Individuals who get Medicare Extra Help (Low-Income Subsidy) do not pay this penalty.