When it comes to Medicare enrollment, there are certain rules to keep in mind. Not following these rules can come with risks. One risk you should know about is Medicare's late enrollment penalties.
What are the Medicare penalties for late enrollment?
Late enrollment penalties in Medicare are extra amounts you may have to pay permanently if you delay signing up for certain parts of Medicare when you're first eligible (and you don't qualify for a Special Enrollment Period).
Read on to learn how to avoid these fees and make your Medicare experience as seamless and pain-free as possible.
| Medicare Part A Penalty | A 10% increase in your monthly premium. You'll have to pay the Part A penalty for twice the number of years you delayed enrolling (Note: Most people do not pay a Part A premium). |
|---|---|
| Medicare Part B Penalty | Adds 10% to your monthly premium for each full 12-month period you waited to sign up. You will pay the Part B penalty for as long as you have this coverage. |
| Medicare Part D Penalty | 1% of the national base beneficiary premium ($36.78 in 2025) for each month you delayed. It's added to your monthly Part D premium for as long as you have this coverage. |
Medicare Part A penalty
Most people are entitled to Part A for free since they paid the Medicare tax while still working. But if you have to pay a premium for Medicare Part A and you don't sign up when you're first eligible, you may face a late enrollment penalty. This penalty is a 10% increase in your monthly premium, and you'll have to pay it for twice the number of years you delayed enrolling.
Medicare Part B penalty
If you delay enrolling in Medicare Part B and don't have other qualifying coverage, you may face a late enrollment penalty. This penalty adds 10% to your monthly premium for each full 12-month period you waited to sign up, and you'll pay it for as long as you have Part B—potentially for life. If you are eligible for a Special Enrollment Period, this penalty can be avoided.
Medicare Part D penalty
If you go 63 days or more without Medicare drug coverage or other creditable prescription coverage after you're first eligible, you'll face a Part D late enrollment penalty. The penalty is 1% of the national base beneficiary premium ($36.78 in 2025) for each month you delayed. That figure is rounded to the nearest $.10 and added to your monthly Part D premium for as long as you have Part D.
If you are eligible for the Part D Low Income Subsidy (Extra Help) or a Special Enrollment Period due to credible drug coverage, late enrollment penalties are not applied. Examples of creditable coverage include:
- Coverage through job or spouse’s job
- Retiree coverage
- Coverage through the Veterans Administration
Here's an example of the Part D late enrollment penalty in action:
Gil waited 20 months after becoming eligible to enroll in Medicare Part D and didn't have any creditable prescription drug coverage during that time. Because of this, he now faces a late enrollment penalty. The penalty is 1% of the national base beneficiary premium for each month he delayed—so that's 20 x 1% = 20%. In 2025, the national base beneficiary premium is $36.78, so 20% of that is $7.36. This amount is rounded to the nearest $.10. That means $7.40 gets added to Gil's monthly Part D premium and he'll continue to pay it for as long as he has Part D coverage.
