What is the Medicare Part D Late Enrollment Penalty?

You may incur a late enrollment penalty if there is a continuous period of 63 days or more at any time after the end of your Initial Enrollment Period (IEP) during which you were eligible to enroll in a Medicare Part D plan, but were not enrolled and not covered under any creditable prescription drug coverage.

A late enrollment penalty is an additional amount added to your monthly Medicare Part D premium. The specific cost of this fee depends on any period of lapse in coverage. You will be required to pay the penalty for the length of your Medicare prescription drug coverage.

Note: “creditable coverage” is coverage as good as Medicare Part D coverage1.

Return to the Medicare FAQ section to view more answers to other commonly asked questions about Medicare prescription drug coverage. For more information about the Medicare Part D late enrollment penalty, contact us at any time.

1 There is an exception if your birthday falls on the first of the month, your 7–month IEP begins and ends one month sooner. For example, if your birthday is July 1, your 7-month IEP is the same as if you were born In June – beginning in March and ending in September.