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febrero 10, 2025 | Dear Marci

Will I have a late enrollment penalty?

Dear Marci,

I turned 65 last year but didn’t sign up for Medicare Part B right away, because I am still working and have employer-sponsored health insurance. A friend mentioned that I might have to pay a late enrollment penalty since I missed my Initial Enrollment Period. Is this true?

Nereyda (Montclair, NJ)

DearĀ Nereyda,Ā 

Great question! Since you are actively working and covered by your employer-sponsored health insurance, you can enroll in Medicare Part B without penalty using aĀ Special Enrollment Period (SEP). The SEP allows you to sign up for Part B anytime while you are still covered by the employer’s health plan or within eight months after your employment-based coverage ends. If you enroll during this period, you won’t owe an LEP.Ā Ā 

Even though it sounds like you shouldn’t owe a Part B LEP, it can be helpful to know how these penalties work. Here is some additional information about LEPs:Ā 

1. Part B late enrollment penaltyĀ 

You may owe aĀ Part B LEPĀ if you delay enrolling in Medicare Part B after you are first eligible. For each 12-month period you delayĀ enrollment,Ā you will owe a 10% Part BĀ premium penalty. So, if you delay enrollment for 24 months, you will owe the normal premium amount for Part B, plus an additional 20%.Ā Ā 

However, you shouldn’t owe an LEP if:Ā Ā 

2. Part D Late Enrollment PenaltyĀ 

You may owe anĀ Part D LEPĀ if you delay enrolling in Medicare Part D after you are first eligible for it. For each month you delayĀ enrollment, 1% of the Part D base premium is added to your regular Part D premium.Ā Ā 

However, you shouldn’t owe an LEP if:Ā 

  • YouĀ hadĀ creditable drug coverageĀ during the time you delayed enrolling in Part DĀ 
  • You qualify for theĀ Extra Help programĀ 
  • You canĀ prove that you received inadequate or inaccurate information about whether your drug coverage was creditable.Ā Ā 

Most people don’t owe a premium for Part A because of their or their spouse’s Social Security work history. If you do owe a premium for Part A, you could owe a Part A LEP if you delay enrollment. Visit theĀ MedicareĀ website to find out more about Part A LEP.Ā 

Hope this helps!Ā Ā 

– Marci

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