Medicare 2026
Medicare Late Penalties: How to Avoid a Lifetime Fee
LOUISVILLE, Ky. — Missing a Medicare deadline can cost you every month for the rest of your life. That's the hard truth behind Medicare's late-enrollment penalties for Part B (doctor visits and outpatient care) and Part D (prescription drugs). The good news: with a little planning, most people in Louisville and across Jefferson County can avoid these penalties entirely.
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Key takeaways
- Part B's late-enrollment penalty adds 10% to your monthly premium for each full 12 months you could have had Part B but didn't, and it usually lasts as long as you have Part B.
- Part D's late-enrollment penalty is 1% of the "national base beneficiary premium" for every month you went without creditable drug coverage after becoming eligible.
- You can avoid both penalties by signing up during your Initial Enrollment Period or by keeping "creditable" coverage (like employer health and drug coverage) until you enroll.
- The fall Annual Enrollment Period runs Oct. 15 – Dec. 7, and Medicare Advantage Open Enrollment runs Jan. 1 – March 31.
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 adds 10% to your standard Part B premium for each full 12-month period you delayed. That surcharge typically stays on your premium for as long as you have Part B.
Example: if you waited three full years to enroll, your Part B premium could be 30% higher every month, permanently. Because the base Part B premium can change each year, the dollar amount of the penalty can grow over time, too.
How the Part D late penalty works
The Part D penalty is smaller month to month but works the same way — it usually sticks around for life. Medicare calculates it as 1% of the "national base beneficiary premium" for each month you went without Part D or other creditable prescription drug coverage after your Initial Enrollment Period ended.
So if you went 20 months without creditable drug coverage, you'd pay an extra 20% on top of your Part D premium. That amount is rounded to the nearest 10 cents and added to your monthly bill.
What counts as "creditable coverage"
You won't owe a penalty for time you were covered by another plan that Medicare considers as good as its own. That's called creditable coverage. Common examples include:
- Employer or union health coverage (for Part B)
- Employer or union drug coverage, TRICARE, or VA benefits (for Part D)
Your plan should send you a notice each year telling you whether your drug coverage is creditable. Keep those letters — you may need them later to prove you shouldn't be charged a penalty.
Enrollment windows that protect you
Most people first become eligible for Medicare during a seven-month Initial Enrollment Period around their 65th birthday: the three months before, the birthday month, and the three months after. Signing up in this window is the simplest way to skip penalties.
If you kept working past 65 and had job-based coverage, you generally get a Special Enrollment Period to sign up for Part B without a penalty — usually up to eight months after that coverage or job ends.
For Part D, you can also join or switch plans during the Annual Enrollment Period, Oct. 15 – Dec. 7. Medicare Advantage enrollees have an additional window, the Medicare Advantage Open Enrollment Period, from Jan. 1 – March 31.
What's new for 2027
A few program-wide changes are worth knowing as you weigh your options:
- Part D out-of-pocket cap: $2,100 in 2026 and $2,400 in 2027. Once your covered drug spending reaches that amount, you pay nothing for covered drugs for the rest of the year.
- Part D maximum deductible: $615 in 2026 and $700 in 2027.
- Coverage gap ("donut hole"): eliminated as of 2025. Part D now has three phases instead of four.
- Medicare Prescription Payment Plan: an optional program that lets you spread your out-of-pocket drug costs across the year in monthly payments.
- IRMAA surcharges: higher-income beneficiaries pay more for Parts B and D. In 2026, these surcharges begin above $109,000 in income for a single filer.
None of these changes remove late-enrollment penalties — so timing your enrollment still matters.
Where Louisville residents can get help
Louisville is in Jefferson County, where residents can compare Medicare options and confirm enrollment deadlines through official sources rather than sales calls. For personal questions — like whether your current coverage counts as creditable, or whether you qualify for a Special Enrollment Period — free help is available.
- Medicare.gov – official plan and enrollment information
- 1-800-MEDICARE (1-800-633-4227) – 24/7 help
- Kentucky SHIP (State Health Insurance Assistance Program) – free, unbiased counseling for Medicare beneficiaries
By the numbers
Medicare Part B premium, 2006–2026
The standard monthly Part B premium has climbed from $88.50 in 2006 to $202.90 in 2026. Hover any point for that year’s premium.
Source: CMS. Standard premium shown; in some hold-harmless years many existing enrollees paid less. Confirm at Medicare.gov.
By the numbers
How people get Medicare in Jefferson County
(MA penetration in Jefferson County)
MA penetration from CMS enrollment data; Medigap share is an estimate. U.S. average is about 54% Medicare Advantage. These are area-level figures, not plan-specific.
Explore
When can you enroll? An interactive year
Enrollment windows are federal and the same nationwide. Confirm your personal dates at Medicare.gov or 1-800-MEDICARE.
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The parts of Medicare
Good to know
Frequently asked questions
How long does the Part B late-enrollment penalty last?
Can I get a Part D late-enrollment penalty removed?
Do I have to enroll in Part B at 65 if I'm still working?
When can I sign up for or change a Part D plan?
- CMS — Medicare enrollment periods (medicare.gov)
For personalized answers, contact Medicare.gov, 1-800-MEDICARE, or your local SHIP.
Also for Louisville
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This page was last updated: September 29, 2026.