Penalties & IRMAA
Part B Late Enrollment Penalty
10% for each full 12 months in the period you could have had Part B but didn’t sign up. This is a lifetime penalty added to the cost of Part B. This penalty is usually waived if you use the Special Enrollment Period and submit proof of employer sponsored coverage.
Part D Late Enrollment Penalty
1% of the “national base beneficiary premium” for each month in the period you could have had Part D but didn’t sign up. This is a lifetime penalty that adjusts each year based on the updated base premium. You should get a letter from your employer sponsored plan each year informing you if your coverage is "creditable prescriptioin drug coverage". Keep this letter as proof to avoid this penalty.
Part B & Part D IRMAA
If your modified adjusted gross income is above a certain amount, you may pay an Income Related Monthly Adjustment Amount (IRMAA). This is an extra charge added to your Part B & Part D premiums. Your tax return from 2 years ago is used for IRMAA determinations. You can submit a form to request that Medicare waive IRMAA.
- Medicare Resources
- Pre-65 Health Insurance
- The Parts of Medicare
- Medicare Enrollment Periods
- Penalties & IRMAA
- Medicare 2024 costs at a glance
- Two Paths to Consider
- What is Medicare Supplement (Medigap) Insurance?
- Part D Prescription Drug Plans
- Part C - Medicare Advantage Plans
- Part C - Special Needs Plans (SNP)