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Enrollment

Understanding the Medicare Enrollment Penalties

January 1, 2025 · Sure Health Choice

Medicare has a few important enrollment periods. Miss one, and you might pay more every month for life. The good news? You can avoid these penalties if you know how the rules work.

What is it? If you don’t enroll in Medicare Part B (medical insurance) when you’re first eligible and don’t have other creditable coverage, you’ll face a monthly penalty. This is one of the most common reasons people end up paying more.

How much is it? 10% of the standard Part B premium for each full 12-month period you went without coverage. This penalty lasts for life.

• Example: Delay Part B by 2 years → 20% added to your premium permanently. That’s a serious penalty for not signing up at age 65.

• How to avoid it: Enroll during your Initial Enrollment Period (IEP) — a 7-month window around your 65th birthday. Or delay safely if you have active job-based coverage. Once that ends, you get an 8-month Special Enrollment Period (SEP) to avoid a penalty for signing up late.

What is it? If you go more than 63 days without creditable drug coverage after you’re first eligible, you’ll pay a Medicare drug plan penalty when you finally sign up.

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