How Much Are Part D Late Enrollment Penalties?
Part D late enrollment penalties accumulate at 1% per month. For example, 12 months equals a 12% late penalty. Furthermore, you will owe the late penalty every month you are in a Medicare Part D plan. It’s not a one-time penalty. You pay the late penalty every month you have a Part D Plan.
Medicare.gov calculates your penalty as follows: Multiply 1% of the “national base beneficiary premium” ($33.67 in 2022) times the number of full, uncovered months you didn’t have Part D or credible coverage.
Therefore, we recommend you find a Medicare Part D Plan when you are first eligible. To avoid accumulating a late enrollment penalty, you can sign up for an inexpensive plan.