LEP

Part A –

People who are eligible for premium free Part A, never have to pay any late enrollment penalty.

Who are not eligible for premium free Part A (i.e. who needs to pay premium to enroll in Part A) and didn’t sign up for Part A when first become eligible, then the person has to pay periodic penalty amount. So, it’s like your monthly premium may go up 10%, and you’ll have to pay the higher premium for twice the number of years you didn’t have had Part A, since the eligibility date.

Part B –

If you don’t sign up for Medicare Part B when you are eligible for the first time, you may have to pay a 10% penalty (added to your monthly premium).

But mostly you don’t pay a late enrollment penalty for Part B, if you meet certain conditions that allow you to sign up for Part B during a Special Enrollment Period. Like if you are working and covered by your employer’s group health coverage then you may delay your part B enrollment, and choose to enroll later, in that case you don’t have to pay penalty.

Part C –

Medicare Part C (Medicare Advantage plan) is optional, and there is no penalty for not signing up. But you must have Medicare Part A and Part B to get Part C.

Part D –

Talking about Late Enrollment Penalty we mostly talk about Part D Late enrollment Penalty.

You ideally should sign up for Part D (prescription drug coverage) when you first become eligible for Medicare (i.e. between 65 years – 3 months, 65th birthday month, 65 years+3 months – which is your 7 month IEP period)
If you don’t enroll within the time period mentioned above, and remained uncovered and later on want to enroll in any Part D plan, you’ll have to pay a late-enrollment penalty if continuous Rx uncovered period is 63 days or more.
So you should enroll for Medicare Standalone Prescription Drug Plan (Part D), or Medicare Advantage plan that offers Prescription Drug coverage, or any other Credible Prescription Drug Coverage.
Medicare calculates the Late enrollment penalty (LEP) amount by multiplying 1% of the “national base beneficiary premium” ($33.19 in 2019) times the number of Part D uncovered months. The monthly premium is rounded to the nearest $.10 and added to your monthly Part D premium.

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Late Enrollment Penalty !!!

Part A – People who are eligible for premium free Part A, never have to pay any late enrollment penalty. Who are not eligible for premium free Part A (i.e. who needs to pay premium to enroll in Part A) and didn’t sign up for Part A when first become eligible, then the person has to […]

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