Medicare 2026

Late to Medicare? How Part B and Part D Penalties Add Up

# Late Medicare enrollment can cost you for life — here's how East Lansing residents can sidestep the…

EAST LANSING, Mich. — Missing your Medicare sign-up window doesn't just mean a delay in coverage. For Part B and Part D, it can mean a penalty that follows you every month for as long as you have Medicare. The good news: these penalties are avoidable if you know the deadlines and act on time.

Here's what East Lansing residents need to understand about how the late-enrollment penalties work, who they hit, and how to stay clear of them.

How the Part B late-enrollment penalty works

Part B covers doctor visits, outpatient care, and many preventive services. If you don't sign up when you're first eligible — and you don't have other qualifying coverage, like a current employer's group health plan — Medicare can charge a penalty.

The math is straightforward: your Part B premium goes up 10% for each full 12-month period you could have had Part B but didn't enroll. That higher premium generally stays with you the entire time you're on Part B. So a two-year delay means a 20% bump, every month, for life.

How the Part D late-enrollment penalty works

Part D covers prescription drugs. If you go 63 days or more in a row without "creditable" drug coverage after you're first eligible, Medicare can add a penalty when you finally enroll.

The formula: 1% of the national base beneficiary premium, multiplied by the number of months you were uncovered, rounded to the nearest 10 cents. That amount is added to your monthly Part D premium — again, typically for as long as you have Part D coverage.

"Creditable" simply means the drug coverage you had is expected to pay, on average, at least as much as a standard Part D plan. Employer plans, union plans, and VA benefits often qualify. Your plan should send you a notice each year telling you whether your coverage is creditable — keep those letters.

When you're supposed to sign up

Most people's first chance to enroll is their Initial Enrollment Period, a seven-month window: the three months before your 65th birthday month, your birthday month, and the three months after.

If you keep working past 65 and have qualifying employer coverage, you may qualify for a Special Enrollment Period to sign up later without penalty. Once that employer coverage ends, you generally have eight months to enroll in Part B, and 63 days to enroll in Part D, penalty-free.

If you miss all of those, the General Enrollment Period (January 1 – March 31) is a fallback for Part B, but penalties may already apply by then.

How to avoid a penalty

A few simple habits keep most people out of trouble:

• Mark your Initial Enrollment Period on the calendar well before your 65th birthday.
• If you're still working at 65, confirm in writing that your employer coverage counts as creditable for both Part B and Part D.
• Save the creditable-coverage notices you get from any drug plan — they're your proof.
• If you lose employer coverage, act quickly. The clock on your Special Enrollment Period starts the moment that coverage ends.
• If you're unsure, ask before you skip. A short call can prevent a lifetime surcharge.

Local help in East Lansing

East Lansing is in Ingham County, where residents can get free, unbiased Medicare counseling from Michigan's State Health Insurance Assistance Program, known locally as MMAP (Medicare/Medicaid Assistance Program). SHIP counselors don't sell plans and aren't paid on commission — they help you understand your options, check whether your current coverage is creditable, and sort out enrollment timing.

Keep in mind the key national dates as you plan: the Annual Enrollment Period runs October 15 – December 7, and the Medicare Advantage Open Enrollment Period runs January 1 – March 31.