How To Calculate Your Medicare Part D Penalty For Late Enrollment
As a beneficiary of Medicare, you will not automatically receive Medicare Part D prescription drugs. This Medicare Part D insurance is optional, but it can be valuable when taking medications. If you do not enroll in the first right of Medicare Part D insurance, you may have to pay a late enrollment fee if you decide to enroll later. Many people automatically enroll in Original Medicare, Part A and B, when they reach the age of 65. However, you may not know that Original Medicare does not insure most of your drugs (except for those you can get as an inpatient or, in some cases, as an outpatient). Medicare Part B insures certain prescription drugs you receive on an outpatient basis, such as in a doctor’s office. However, this is usually the type of medication you need to get from a doctor, for example, infusion medications.
If you need help with most other drug costs, you must enroll in Medicare Part D. Part D of Medicare is a prescription drug. This is optional, but if you delay enrollment for a prescription drug policy of Medicare Part D, you may be charged a late enrollment fee if you decide later. Then this penalty is calculated and classified:
If you join a Part D prescription drug policy, the policy will calculate the number of months you could enroll in your Part D prescription drugs. However, they have decided not to enroll and have waived other recognized prescription drugs for 63 consecutive days or more. The prescription drug policy D then provides this information to the Medicare program.
Then, Medicare will determine the penalty for late enrollment by multiplying 1% of the primary beneficiary’s national premium base by the number of months you had no coverage. Medicare rounds that number to the nearest $ 0.10.
This amount will be added to your monthly premium for Part D of the prescription drug. The national base premium (i.e. $ 35.02 in 2018) could change each year, so your Medicare Part D penalty fee may differ from year to year. Note: If you join a Medicare prescription drug policy the first time you are eligible for Medicare, you will not be penalized with a late enrollment fee. You will also not be penalized if you are continuously enrolled in prescription drug insurance (as described above) and have no interruptions for more than 63 consecutive days. Visit www.medicaresupplementplans2020.com/ for 2020 quotes for supplement plans.
Keep in mind that you may have to pay this penalty as long as you are enrolled in a Medicare Prescription Drug Policy. There are some exceptions. Suppose a disabled person below the age of 65 years was convicted of a penalty for late enrollment. At the age of 65 years, this person would have a first registration period. If he or she is still signed up for Part D prescription drug policy, the penalty for late enrollment will be eliminated in the future. People who are eligible for the Medicare Low Income Subsidy, also known as Extra Help Program, are exempt from late enrollment for Part D.