Medicare 2026

Miss a Medicare Deadline? Here's What It Really Costs

KISSIMMEE, Fla. — Signing up for Medicare on time sounds simple, but many people in Central Florida don't realize that missing a deadline by even a few months can add a fee to their premium for as long as they have coverage. These are called late-enrollment penalties, and they apply to both Part B (doctor visits and outpatient care) and Part D (prescription drugs). The good news: once you understand the rules, they are not hard to avoid.

How the Part B late penalty works

If you don't sign up for Part B when you're first eligible — and you don't have other qualifying coverage — Medicare can add 10% to your monthly Part B premium for each full 12-month period you delayed. That extra charge usually stays on your bill for as long as you have Part B.

For example, someone who waits three full years past their Initial Enrollment Period could pay 30% more every month, forever. That adds up quickly over a retirement.

How the Part D late penalty works

The Part D penalty is calculated differently. Medicare takes 1% of the "national base beneficiary premium" and multiplies it by the number of full months you went without Part D or another form of creditable prescription drug coverage. That amount is rounded to the nearest 10 cents and added to your monthly Part D premium.

Because the base premium can change each year, your penalty can shift slightly too — but it doesn't go away.

Who's most at risk of getting hit

The people who most often get surprised by a penalty include:

• Retirees who assumed Part B was optional if they weren't seeing a doctor much.
• People who kept only vision or dental coverage after leaving a job — that is not creditable drug coverage.
• Those who relied on VA benefits for prescriptions but never signed up for Part D, then later wanted a Part D plan.
• People who missed their Initial Enrollment Period, which starts three months before the month you turn 65 and ends three months after.

Kissimmee is in Osceola County, where residents have a range of Medicare Advantage and stand-alone Part D options to choose from during enrollment periods. Having options doesn't help, though, if a penalty is already attached to your premium.

How to avoid the penalties

The simplest strategy is to enroll during your Initial Enrollment Period, even if you're not sure you'll use the coverage right away. If you plan to keep working past 65 and have employer coverage, ask your benefits office two questions in writing:

1. Is this coverage "creditable" for Part D? 2. Will it count as qualifying coverage that lets me delay Part B without a penalty?

When you eventually leave that job or lose the coverage, you'll typically qualify for a Special Enrollment Period to sign up for Part B and Part D without a penalty — but you have to act within the allowed window.

What 2027 brings for Part D

Even if you never trigger a penalty, it's worth knowing the shape of Part D heading into 2027. The out-of-pocket cap for covered drugs is $2,100 in 2026 and $2,400 in 2027, and the maximum deductible a plan can charge is $615 in 2026 and $700 in 2027. The old "donut hole" coverage gap is gone as of 2025, leaving three simpler phases. Medicare also offers the Prescription Payment Plan, an optional program that lets you spread drug costs across the year in monthly installments instead of paying big amounts at the pharmacy counter.

For higher earners, IRMAA surcharges (extra amounts added to Part B and Part D premiums) begin above $109,000 in income for a single filer in 2026.