What is the penalty if a Medicare Eligible person goes more than 63 days without Medicare Part D creditable coverage.
The penalty is typically 1% of the average cost of a Medicare Part D coverage for each month of delay.
Example: Mary waits 12 months before getting part D after she turns age 65. The penalty is roughly 1% of $35.63 or .36 cents times 12 months or $4.32/month added on to her Chosen Part D coverage for the rest of her life.
What is the penalty if a person doesn’t enroll in Medicare Part B when first eligible and they are not covered by a Group health plan from a company with 20 or more employees?
The penalty is 10% of the Medicare Part B premium for each 12 months (year) they should have been on the plan.
Example: Paul waits 2 years before enrolling in Medicare Part B and is not on a Group health insurance plan from an employer with over 20 employees. His penalty is roughly 10% of $134/month = $13.40 for 2 years = $26.80/month for the rest of his life.
Paul will also have to wait for the General Enrollment period of January 1st through March 31st to enroll for a July 1st start date.
Do I have to pay more for Medicare Part B and D if I have a higher income?
Yes, if an individual Tax Payer makes over $85,000 ($170,000 filing jointly) you may have to pay an additional $53.50 to $294.60/m for your Part B depending on income.
Part D Income adjustments range from $13.30 to $76.20/m for individual incomes over $85,000, $170,000 filing jointly.