If you have accrued a monthly Medicare Part D late-enrollment premium penalty, you can expect to pay a 4% increase in your 2014 penalty. The late-enrollment premium penalty is an additional monthly cost paid by Medicare Part D beneficiaries who did not enroll in a Medicare Part D prescription drug plan when they were first eligible or who were without creditable prescription drug coverage for more than 63 days.
If you are subject to a late-enrollment penalty, you will pay your plan’s monthly Medicare Part D premium along with an additional penalty calculated as one percent (1%) of the national average monthly premium for each month you were without creditable prescription drug coverage.
As a reminder, the CMS estimated weighted average Medicare Part D premium listed in the section above is not used for purposes of calculating the late-enrollment penalty. Instead, the actual (non-weighted) Part D base beneficiary premium (or national base monthly Medicare Part D premium figure) is used to determine the amount of your late-enrollment penalty. In 2014, the average monthly premium used to calculate the late-enrollment penalty will be $32.42, a 4% increase over the 2013 figure of $31.17.
As reference, here are the premium values used to calculate the late-enrollment penalties from past years:
Need an example of how to estimate your 2014 late-enrollment penalty? If you were previously without creditable prescription drug coverage for five years (60 months), you would pay, in addition to your monthly premium, a monthly penalty of $19.45 (60% of $32.42) or roughly $233 per year. Using this same example, you would have paid a 2013 monthly penalty of $18.70 or about $224 per year. Click here if you would like to read more on the Medicare Part D late-enrollment penalty. Also, you can learn more in our Late-Enrollment Penalty (LEP) FAQ section.
Please note: In certain situations, you can appeal your late-enrollment penalty.
Also, no late-enrollment penalties are assessed on people who qualify for the Medicare Part D financial Extra-Help program.
If you are subject to a late-enrollment penalty, you will pay your plan’s monthly Medicare Part D premium along with an additional penalty calculated as one percent (1%) of the national average monthly premium for each month you were without creditable prescription drug coverage.
As a reminder, the CMS estimated weighted average Medicare Part D premium listed in the section above is not used for purposes of calculating the late-enrollment penalty. Instead, the actual (non-weighted) Part D base beneficiary premium (or national base monthly Medicare Part D premium figure) is used to determine the amount of your late-enrollment penalty. In 2014, the average monthly premium used to calculate the late-enrollment penalty will be $32.42, a 4% increase over the 2013 figure of $31.17.
As reference, here are the premium values used to calculate the late-enrollment penalties from past years:
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Need an example of how to estimate your 2014 late-enrollment penalty? If you were previously without creditable prescription drug coverage for five years (60 months), you would pay, in addition to your monthly premium, a monthly penalty of $19.45 (60% of $32.42) or roughly $233 per year. Using this same example, you would have paid a 2013 monthly penalty of $18.70 or about $224 per year. Click here if you would like to read more on the Medicare Part D late-enrollment penalty. Also, you can learn more in our Late-Enrollment Penalty (LEP) FAQ section.
Please note: In certain situations, you can appeal your late-enrollment penalty.
Also, no late-enrollment penalties are assessed on people who qualify for the Medicare Part D financial Extra-Help program.
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