Medicare 2026

Medicare late penalties and coverage gaps: a Richfield guide

RICHFIELD, Minn. — If you're approaching your 65th birthday, the mail has probably already started arriving. Some of it is helpful. A lot of it is not. Here's the part that actually matters: you have a specific, time-limited window to sign up for Medicare, and missing it can mean lifelong late penalties and gaps in coverage.

That window is called the Initial Enrollment Period (IEP), and for most people turning 65, it's the single most important date range on the Medicare calendar.

What the Initial Enrollment Period actually is

Your IEP is a seven-month stretch built around your 65th birthday. It includes:

• The three months before the month you turn 65
• The month of your 65th birthday
• The three months after

So if your birthday falls in June, your IEP runs from March 1 through September 30. This is the window when you can first sign up for Medicare Part A (hospital), Part B (medical), a Part D prescription drug plan, or a Medicare Advantage (Part C) plan.

One tip worth remembering: enrolling in the three months before your birthday month usually means your coverage starts on the first day of your birthday month. Waiting until later in the IEP can delay when your coverage begins.

First steps to take in Richfield

Richfield is in Hennepin County, and Minnesotans here have a lot of Medicare choices to sort through. Before comparing anything, take these first steps:

1. Decide about Part A and Part B. If you're already getting Social Security, you'll typically be enrolled automatically. If not, you sign up yourself through the Social Security Administration. 2. Check any current coverage. If you're still working past 65 and have employer insurance, or your spouse does, the rules about when to enroll can differ. Get this in writing from your employer's benefits office before making a decision. 3. Make a list of your medications and doctors. You'll need this to compare Part D or Medicare Advantage options later. 4. Know your ZIP code matters. Plan availability is set at the county level, so what's offered in Hennepin County may differ from a neighbor's plan choices in another county.

Why the deadline matters

Skipping your IEP without other qualifying coverage can lead to late enrollment penalties that stick with you for as long as you have Medicare. The Part B penalty, for example, adds 10% to your monthly premium for each full 12-month period you could have had Part B but didn't sign up. That's not a one-time fee — it's permanent.

Part D has its own late penalty if you go 63 days or more without "creditable" drug coverage after becoming eligible.

What's new for 2027 that new enrollees should know

A few program-level facts are worth knowing as you head into your first year of Medicare:

• Part D out-of-pocket cap: The cap is $2,100 in 2026 and $2,400 in 2027 for covered prescription drugs in a calendar year.
• Part D deductible: Plans can set a deductible up to $615 in 2026 and up to $700 in 2027.
• The old "donut hole" is gone. As of 2025, Part D moved to a simpler three-phase structure.
• Medicare Prescription Payment Plan: This optional program lets you spread your drug costs over monthly payments instead of paying big amounts at the pharmacy counter.
• IRMAA surcharges: Higher-income enrollees pay extra for Parts B and D. For 2026, the surcharge starts above $109,000 in income for a single filer.

After your IEP: the other windows

Once your IEP closes, other enrollment periods take over:

• Annual Enrollment Period (AEP): October 15 – December 7, when anyone with Medicare can join, drop, or switch Part D and Medicare Advantage plans.
• Medicare Advantage Open Enrollment: January 1 – March 31, when people already in a Medicare Advantage plan can switch once.
• Special Enrollment Periods may apply after certain life events, like moving or losing employer coverage.