Late Enrollment Penalty for Part D Medicare supplement plans, what is it?
Are you enrolling in Medicare? Do you have doubts if you must take Part D coverage for prescription drug? Yes, this may seem as an unnecessary expense to pay premium or there may be other Medicare supplement plans offering prescription benefits coverage.
Skipping the coverage of Part D can be a costly decision, based on your situation. This is said because all of a sudden you will realize that you do not have Medicare supplement plans to offer cover to your medication on becoming ill. And then if you wish to enroll for Part D Medicare supplement plans, you end up paying a higher premium for all your life.
Medicare Part D Late Enrollment
Each individual becomes first eligible for Medicare supplement plans and there is a seven month period of enrolment to sign up for the Part D inclusion as coverage. This eligibility turns as you are 65 years and the initial period of enrollment starts before three months from your 65th birthday month and it ends after three month of your birthday month.
After that, you pay a penalty if you go without these types of Medicare supplement plans for prescription drug plans for 63 days and more.
What is Late Enrollment Penalty for Medicare Part D?
The penalty for Medicare Part D is based on the months you went without this coverage. Thus, for each month that went without the coverage, you pay an additional of 1 percent premium of the current “national premium.” Right now for 2018, it is $35.02 as the beneficiary premium.
However, this penalty is not for one time. There is a need to pay every month until you have Medicare supplement plans prescription coverage. The Part D penalty of Medicare gets rounded to the $.10 as the nearest and gets added to the premium of Part D. This may go up or change every year as it is based on the national beneficiary premium each year.
Drawbacks to Enroll in a Part D Plan
Enroll in Part D plan means you cannot do it as you wish. The initial enrolment period is the right time, but once it ends, you can enroll during October 15 to December 7, the Open Enrollment Period every year. It means if you delay in signing for Part D, you end up paying for expensive medications the full price all by yourself on becoming ill.
In case you have coverage through union or employer, you may ignore Part D penalty, but check if the coverage is creditable, which means it is same or better than Medicare supplement plans benefits.