Medicare late enrollment penalties explained
Small percentages that can last for life.
Medicare charges a penalty if you don't sign up when you're first eligible and you didn't have qualifying coverage instead. The Part B and Part D penalties usually last as long as you have that coverage, so a late decision at 65 can cost you every month for decades.
Part B: 10% for each full year
Your Part B premium can go up 10% for each full 12-month period you could have had Part B but didn't sign up. In 2026, someone who waited 24 months pays 20% more than the $202.90 standard premium, or $243.50 a month. You usually pay it for as long as you have Part B.
Months you (or your spouse) had group health coverage from current employment don't count. COBRA, retiree coverage, VA health care and Marketplace plans don't protect you.
Part D: 1% for each month
If you go 63 days or more in a row without Part D or other creditable drug coverage after your Initial Enrollment Period, a penalty is added to your drug plan premium: 1% of the national base beneficiary premium ($38.99 in 2026) for each full month you went without, rounded to the nearest 10 cents. Fourteen months without coverage adds about $5.50 a month in 2026. Because the base premium changes every year, so does the penalty's dollar amount, and it's usually permanent.
People who get Extra Help don't pay the Part D penalty.
Part A: only if you pay a premium
Most people get Part A free, so there's no penalty. If you have to buy Part A and sign up late, your premium can rise 10%, paid for twice the number of years you could have had Part A but didn't.
How to avoid them
- Sign up during your Initial Enrollment Period unless you have group coverage from current work.
- Ask your employer's benefits office whether its drug coverage is creditable. You should get a notice each year.
- If you delay Part B, sign up within 8 months of your job or coverage ending, whichever comes first.
- Keep records of your employer coverage; you may need form CMS-L564.
If you think a penalty is wrong
You can ask Social Security to reconsider a Part B penalty, and ask for a reconsideration of a Part D penalty through your drug plan. Proof of creditable coverage or of an exceptional circumstance can remove it.
Common questions
Usually not. It lasts as long as you have Part B. People under 65 on disability are an exception: the penalty stops when they turn 65 and get a new Initial Enrollment Period.
Coverage expected to pay, on average, at least as much as standard Medicare drug coverage, such as many employer, union, TRICARE or VA plans. Your plan should tell you in writing.
Yes. Our late enrollment penalty calculator uses this year's official formulas.
Want help with your own choices?
Every state runs a State Health Insurance Assistance Program (SHIP) with trained counselors who give free, unbiased Medicare help and do not sell plans. Find yours on our Medicare by state pages, or call Medicare at 1-800-MEDICARE (1-800-633-4227) (TTY 1-877-486-2048, 24 hours a day, 7 days a week).
Planning the rest of your coverage in retirement? We can help with life insurance later in life and final expense coverage.
Sources
- Avoid late enrollment penalties, Medicare.gov. Checked September 29, 2026.
- Costs for Medicare drug coverage, Medicare.gov. Checked September 29, 2026.
- 2026 Medicare Parts A & B Premiums and Deductibles, Centers for Medicare & Medicaid Services. Checked September 29, 2026.
General information about the federal Medicare program, not advice about your situation. Figures are for 2026 unless stated and change every year; last reviewed September 29, 2026. Quote My Policy is a private company. Not connected with or endorsed by the United States government or the federal Medicare program.
Quote My Policy does not sell Medicare plans on this site. For plan-specific help, contact Medicare at 1-800-MEDICARE (1-800-633-4227) (TTY 1-877-486-2048, 24 hours a day, 7 days a week) or your State Health Insurance Assistance Program.