Home
SeniorSecure HMO
Seniors Health
Medicare Preferred PPO
Dental Plans
HTH Travel Health Insurance
Site Map
Dental & Vision for Everyone
Vision Only Plan
Barricks Insurance Blog
Medicare.gov
Contact Us
 Apply Online for Health Insurance Coverage
|
What's the Part D late enrollment penalty?The late enrollment penalty is an amount added to your Medicare Part D premium. You may owe a late enrollment penalty if, at any time after your initial enrollment period is over, there's a period of 63 or more days in a row when you don't have Part D or other Prescription drug coverage (for example, from an employer or union) that's expected to pay, on average, at least as much as Medicare's standard prescription drug coverage. People who have this kind of coverage when they become eligible for Medicare can generally keep that coverage without paying a penalty, if they decide to enroll in Medicare prescription drug coverage later. creditable prescription drug coverage. Note
If you get Extra Help, you don't pay the late enrollment penalty. How much is the Part D penalty?The cost of the late enrollment penalty depends on how long you went without creditable prescription drug coverage. The late enrollment penalty is calculated by multiplying 1% of the "national base beneficiary premium" ($31.08 in 2012) times the number of full, uncovered months you were eligible but didn't join a Medicare Prescription Drug Plan and went without other creditable prescription drug coverage. The final amount is rounded to the nearest $.10 and added to your monthly premium. The national base beneficiary premium may increase each year, so the penalty amount may also increase each year. Your plan will tell you if you owe a penaltyAfter you join a Medicare drug plan, the plan will tell you if you owe a penalty, and what your premium will be. You may have to pay this penalty for as long as you have a Medicare drug plan. If you had to pay a Part D late enrollment penalty before you turned 65, the penalty will be waived once you reach 65. Example
Mrs. Smith didn't join when she was first eligible—by June 15, 2009. She doesn't have prescription drug coverage from any other source. She joined a Medicare drug plan with an effective date of January 1, 2012. Since Mrs. Smith was without creditable prescription drug coverage from July 2009–December 2011, her penalty in 2011 was 30% (1% for each of the 32 months) of $31.08 (the national base beneficiary premium for 2012), which is $9.32. The monthly penalty is rounded to the nearest $.10. She pays this late enrollment penalty of $9.30 monthly in addition to her plan’s monthly premium. Here's the math: .30 (30% penalty) × $31.08 (2012 base beneficiary premium) = $9.32 $9.32 (rounded to the nearest $0.10) = $9.30 $9.30 = Mrs. Smith's monthly late enrollment penalty |
|
NEW - 5 STAR SPECIAL ENROLLMENT PERIOD Starting December 8, 2011, you can switch to a 5-star (Member Satisfaction Rating) Medicare Prescription Drug Plan at any time during the year. The overall plan star ratings are available at www.medicare.gov/find-a-plan. { page 85 of "Medicare & you" Brochure. } |
Important Disclaimer: Answers and comments provided above are general information, and are not intended to substitute for informed professional medical, psychiatric, psychological, tax, legal, investment, accounting, governmental, or other professional advice. We do not endorse, and expressly disclaims liability for any product, manufacturer, distributor, service, health plan, or service provider mentioned or any opinion expressed in the website. Replies, comments, or information gathered on BarricksInsurance.com website may not be accurate but are intended to be helpful.
Anthem Blue Cross Life and Health Insurance Company (Anthem) has contracted with the Centers for Medicare and Medicaid Services (CMS) to offer the Medicare Prescription Drug Plans (PDPs) noted above or herein Anthem is the state-licensed, risk-bearing entity offering these plans. Anthem has retained the services of its related companies and authorized agents/brokers/producers to provide administrative services and/or to make the PDPs available in this region. Anthem Blue Cross Life and Health Insurance Company is an independent licensee of the Blue Cross Association. ® ANTHEM is a registered trademark of Anthem Insurance Companies, Inc. The Blue Cross name and symbol are registered marks of the Blue Cross Association.