Medicare 2026

Missed Your Medicare Sign-Up? What It Really Costs

ANNAPOLIS, Md. — For many people turning 65 in Anne Arundel County, the trickiest part of Medicare isn't picking coverage. It's knowing exactly when to sign up. Miss the window for Part B or Part D, and the federal government can add a penalty to your premium — in most cases, for as long as you have that coverage.

The good news: the rules are clear, and the penalties are avoidable if you know what to watch for.

How the Part B penalty works

If you don't sign up for Part B when you're first eligible — and you don't qualify for a Special Enrollment Period — Medicare adds 10% to your monthly Part B premium for every full 12 months you went without it.

That extra amount isn't a one-time fee. It generally stays on your bill for the entire time you have Part B. So a small delay early on can quietly follow you for the rest of your life.

Most people become eligible during their Initial Enrollment Period: the 7-month window that starts three months before the month you turn 65 and ends three months after.

How the Part D penalty works

The Part D late-enrollment penalty works a little differently. It kicks in if you go 63 days or more in a row without "creditable" prescription drug coverage after you were first eligible to join a Part D plan.

The penalty is 1% of the national base beneficiary premium (set each year by Medicare) times the number of full months you went without coverage. That amount is added to your Part D premium every month, and it also generally lasts as long as you have Part D.

"Creditable" is the key word. It means drug coverage that Medicare considers at least as good as a basic Part D plan. Employer plans, union plans, and some retiree plans often count — but not always. Your plan is required to send you a notice each year telling you whether it's creditable. Keep those letters.

Why 2027 makes Part D worth a second look

Even if you don't take many prescriptions right now, the Part D landscape has shifted. The out-of-pocket cap on covered drugs was $2,100 in 2026 and is $2,400 in 2027. The maximum Part D deductible was $615 in 2026 and is $700 in 2027. And the old "donut hole" coverage gap is gone, replaced by three simpler phases.

There's also the Medicare Prescription Payment Plan, which lets you spread your drug costs across the calendar year instead of paying a large amount up front at the pharmacy.

For higher earners, IRMAA surcharges (income-related adjustments) begin above $109,000 for a single filer in 2026 and can raise both Part B and Part D premiums.

How to avoid the penalties

A few practical steps go a long way:

• Mark your Initial Enrollment Period. It starts three months before your 65th birthday month and ends three months after.
• If you're still working past 65, confirm in writing that your employer's health and drug coverage is creditable. Ask HR — don't guess.
• When employer coverage ends, use your Special Enrollment Period. For Part B, you generally have 8 months. For Part D, you have 63 days to join a Medicare drug plan without penalty.
• Don't skip Part D just because you don't take medications. A basic drug plan can be less expensive than the penalty you'd owe later.
• Use the Annual Enrollment Period (Oct. 15 – Dec. 7) to review your coverage each year, and the Medicare Advantage Open Enrollment Period (Jan. 1 – March 31) if you're already in an Advantage plan and want to change.

Where Annapolis residents can get help

Annapolis is in Anne Arundel County, where a range of stand-alone Part D plans and Medicare Advantage plans with drug coverage are offered each year. The specific choices change annually, so it's worth comparing options at medicare.gov during the fall enrollment window.

For one-on-one help that isn't tied to any insurance company, Maryland's State Health Insurance Assistance Program (SHIP), known locally as SHIP/SMP, offers free counseling to people with Medicare and their families.