If a person does not enroll in Medicare Part B (out-patient care and doctor visits) when first
eligible, and they do not have health coverage from an employer group health plan,
they will incur a late-enrollment penalty if they later choose to enroll in Medicare Part B.
This is also true if someone has Medicare Part B, but then drops their Part B coverage, and then later decides to sign up again for coverage.
Remember, if a person does not enroll in Medicare Part A and/or Medicare Part B when they were first eligible, and they were not eligible for a
Special Enrollment Period, they can only elect Medicare Part A or Medicare Part B during the
General Enrollment Period that starts January 1st and continues through March 31 of each year.
The Medicare Part B late-enrollment penalty is 10% of the current Medicare Part B premium for every 12-month
period that the person delayed enrolling in Medicare Part B after they were first eligible or dropped Part B and were without Medicare Part B coverage when they were eligible.
For example, the 2024 standard Medicare Part B premium is
$174.70 (for most people), so if a person delays enrolling in Medicare Part B (and has no employer coverage) for 12 months, they will have a 10% penalty of $17.47 in 2024 -- 10% for each year you could have signed up for Part B, but didn't.
You can read more about the most recent changes in
Medicare Part B premiums in our Medicare articles.
The Medicare Part B penalty is
permanent and will be paid for as long as the person has Medicare Part B coverage.
Please note that a person may be excluded from paying a Medicare
Part B late-enrollment penalty if they meet certain
conditions allowing them to sign up for Medicare Part B during a Special
Enrollment Period (for example, as noted by Medicare, a person will have
an 8-month Special Enrollment Period to enroll in Medicare Part A
and/or Medicare Part B starting the month after the employment ends or
the
group health plan insurance based on current employment ends, whichever
happens first).
Examples of the Medicare Part B late-enrollment penalty provided by Medicare
Older Example: "Your Initial Enrollment Period ended September 30, 2009. You waited to
sign up for Medicare Part B until the General Enrollment Period in March 2012.
Your Part B premium penalty is 20%. (While you waited a total of 30
months to sign up, this included only 2 full 12-month periods.) You’ll
have to pay this 20% penalty for as long as you have Medicare Part B coverage."
(Previously found at: https://www.medicare.gov/ your-medicare-costs/ part-b-costs/penalty/ part-b-late-enrollment-penalty.html)
2023 Example: "If you waited 2 full years (24 months) to sign up
for Part B and didn’t qualify for a Special Enrollment Period, you’ll
have to pay a 20% late enrollment penalty (10% for each full 12-month
period that you could have signed up), plus the standard Part B monthly
premium ($164.90 in 2023) ($174.70 in 2024).
$164.90 (2023 Part B standard premium) ($174.70 in 2024)
+ $32.98 (20% [of $164.90] late enrollment penalty) ($34.94 in 2024)"
(see: https://www.medicare.gov/ basics/costs/ medicare-costs/ avoid-penalties)
The Medicare Part B Initial Enrollment Period
A person can enroll in Medicare Part B during their 7-month Initial
Enrollment Period when they first become eligible for Medicare (3 months
before the Medicare eligibility month, plus the month a person turns
65, and including the 3 months after the month a person turns 65).
During the 7-month Initial Enrollment Period a person can also enroll in
Medicare Part A, if they were not already automatically enrolled.
You can also learn more about Medicare Part B coverage in our Frequently Asked Questions:
q1medicare.com/faq/category/medicare-part-b/138/