The late-enrollment penalty is added to a beneficiary’s premium every month, and the amount depends on how long the beneficiary went without Part D or creditable prescription drug coverage. This can really add up over time. Learn how to help clients avoid Medicare penalties.
Medicare calculates the penalty by multiplying 1% of the “national base beneficiary premium” ($34.10 in 2016) times the number of full, uncovered months the beneficiary didn’t have Part D or creditable coverage. The monthly premium is rounded to the nearest $.10 and added to the beneficiary’s monthly Part D premium.
