Steps Insurers and Consumer Groups Cite to Avoid Penalties
UnitedHealthcare lists these steps:
- Enroll during your Initial Enrollment Period when you first become eligible.
- If you qualify for a Special Enrollment Period, make sure your employer coverage is considered creditable for both Part B and Part D.
- Get written coverage documentation as proof of creditable prescription drug coverage.
- If you qualify for a Special Enrollment Period, enroll in Part D within its first two months.
Conclusion
The Medicare mistake that costs retirees the most is a quiet one: assuming enrollment can wait without checking whether the coverage you have actually qualifies. Part B and Part D penalties are generally permanent. The Part B penalty also rises as the standard premium rises. Based on the sources cited here, confirming the timing of your Initial Enrollment Period and whether any employer coverage counts is what determines whether a penalty applies.
Frequently Asked Questions
How much is the Part B late enrollment penalty?
The penalty is 10% of the standard Part B premium for each full 12-month period you could have enrolled but didn’t. With a 2026 standard premium of $202.90, a two-year delay adds $40.58 per month, according to Covered USA.
Does the Part B penalty ever go away?
In most cases, no. AARP and UnitedHealthcare say you generally pay it for as long as you have Part B. MedicareFAQ notes limited exceptions, such as a successful appeal based on misinformation from a federal employee.
Can I delay Medicare if I’m still working?
According to AARP, you may be able to delay if you or your spouse is still working and has health insurance through an employer. After that coverage ends, you must sign up during a special enrollment period, either while working or within eight months of losing the coverage.
How is the Part D late enrollment penalty calculated?
MedicareFAQ describes it as 1% of the national base beneficiary premium multiplied by the number of months you went without coverage. It cites a 2026 base premium of $38.99 and says the penalty lasts as long as you have Part D.
Does a Medicare Advantage plan avoid the Part B penalty?
No. MedicareFAQ states that if you enroll in a Medicare Advantage plan, you must still have Part B, so the Part B penalty still applies.
What if I miss both my initial and special enrollment periods?
Covered USA says you can enroll during the General Enrollment Period, January 1 through March 31 each year. You will owe the late enrollment penalty for the months you went without coverage, and it will be permanent.
Sources
- AARP: How Much Is the Late Enrollment Penalty for Medicare Part B?
- UnitedHealthcare: How to Avoid Paying Medicare Late Enrollment Penalties
- Aetna: How to Avoid Medicare Parts A, B and D Late Enrollment Penalties
- MedicareFAQ: Medicare Late Enrollment Penalties, The Complete 2026 Guide
- MedicareFAQ: Medicare Part B Late Enrollment Penalty
- Covered USA: Medicare Late Enrollment Penalties
