Monthly Archives - September 2021

Senior Couple dancing together knowing that they avoided the Part D Late Enrollment Penalty

What’s the Part D late enrollment penalty?

The late enrollment penalty is an amount that’s added to your Part D premium if, at any time after your Part D Initial Enrollment Period is over, there’s a period of 63 or more days in a row when you don’t have Part D or other creditable prescription drug coverage. Note: If you get Extra Help, you don’t pay a late enrollment penalty. How much is the late enrollment penalty? Currently, the penalty amount is calculated by multiplying the 1% penalty rate times the “national [...]

Doctor discussing how to avoid paying a penalty with your Medicare Drug Plan.

How do I avoid paying a penalty?

Join a Medicare drug plan when you’re first eligible or have other creditable prescription drug coverage at that time to avoid paying the penalty. Don’t go 63 days or more in a row without a Medicare drug plan or other creditable prescription drug coverage. Creditable prescription drug coverage could include drug coverage from a former employer or union, TRICARE, the Department of Veteran Affairs (VA), or the Indian Health Service. Your plan must tell you each year if your drug coverage is creditable to avoid paying [...]

Senior couple now eligible for Medicare.

When can I join, switch, or drop a drug plan?

During your 7-month Initial Enrollment Period, when you first become eligible for Medicare. You can join a Medicare drug plan during the 7-month period that begins three months before you turn 65, includes the month you turn 65 and ends three months after you turn 65. If you join during 1 of the three months before you turn 65, your coverage will begin the first day of the month you turn 65. If you join the month you turn 65 or 1 of the three [...]