What to know

  • Part B and Part D have separate penalty rules.
  • Some penalties can continue for as long as you have the coverage.
  • Creditable drug coverage documentation matters.

Part B penalty

If you delay Part B without a qualifying reason, the monthly premium may increase. The amount generally depends on how long you went without Part B after becoming eligible, and the penalty can last as long as you have Part B.

Part D penalty

A Part D penalty may apply after a qualifying gap without Part D or other creditable prescription coverage. The penalty is generally added to the monthly drug-plan premium and can change over time.

Document before delaying

Ask the employer or plan whether prescription coverage is creditable and save the notice. Confirm Part B eligibility with Medicare or Social Security before assuming other coverage protects you from a penalty.