JLSMITH EDUCATION CENTER

Taking the guesswork out of your plan!

Part D Premium Penalty

June 11, 2017

 

What’s the Part D late enrollment penalty? The late enrollment penalty is an amount that may be added to a person’s monthly Part D premium.

 

A person enrolled in a Medicare drug plan may owe a late enrollment penalty if he or she goes without Part D or creditable prescription drug coverage for any continuous period of 63 days or more after the end of his or her Initial Enrollment Period for Part D coverage.

 

Generally, the late enrollment penalty (also called the “LEP” or “penalty”) is added to the person’s monthly Part D premium for as long as he or she has Medicare prescription drug coverage, even if the person changes his or her Medicare drug plan. The late enrollment penalty amount changes each year. The cost of the late enrollment penalty depends on how long the person went without Part D or creditable prescription drug coverage.

 

How’s the late enrollment penalty calculated? Medicare, not the plan, calculates the late enrollment penalty when a person subject to the penalty first joins a Medicare drug plan.

 

The late enrollment penalty amount typically is 1% of the national base beneficiary premium for each full, uncovered month that the person didn’t have Part D or creditable coverage. The monthly penalty is rounded to the nearest $0.10 and added to the monthly Part D premium.

Share on Facebook
Share on Twitter
Please reload

Recent Articles:
Please reload

Search By Topic:
Please reload

Participating and Non-Participating Medical Providers

June 11, 2017

1/5
Please reload

© 2010 JL SMITH ASSOCIATES     >>>     Call us: 800-589-2240      >>>     4884 HIGBEE AVENUE NW., Canton, OH 44718 

This website is a private website and is not associated, endorsed or authorized by the Center for Medicare and Medicaid Services, nor do we claim to be. This site contains basic information about Medicare Supplement insurance for people with Medicare. If you would like to find more information about the Medigap program, please visit the Official US Government Site located at www.medicare.gov.