Medicare 2026

How Medicare late fees stick to Lebanon premiums for life

LEBANON, Ore. — Miss a Medicare sign-up window, and the price tag can follow you for the rest of your life. That's the part of Medicare that catches many people in Lebanon off guard: the late-enrollment penalties for Part B (doctor visits and outpatient care) and Part D (prescription drugs) don't go away after you pay them off. They stick to your monthly premium, month after month, for as long as you have coverage.

The good news? These penalties are almost entirely avoidable if you know the deadlines and act on time.

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 qualify for a Special Enrollment Period — Medicare adds 10% to your standard Part B premium for every full 12 months you could have had it but didn't.

That penalty isn't a one-time fee. It's baked into your monthly premium, and in most cases you'll pay it for as long as you're enrolled in Part B. Wait three years without a good reason, and you could be paying 30% more every month, essentially forever.

How the Part D late penalty works

Part D works a little differently. If you go 63 days or more in a row without "creditable" prescription drug coverage after you're first eligible, Medicare can charge a Part D late-enrollment penalty when you finally sign up.

The math: 1% of the "national base beneficiary premium" for each month you went without coverage, rounded to the nearest 10 cents, added to your Part D premium every month. Because that base premium can change year to year, your penalty amount can shift slightly too — but it doesn't go away.

"Creditable" coverage means drug coverage that's expected to pay, on average, at least as much as standard Medicare Part D. Employer plans, union plans, and VA benefits often qualify. If you have one of these, hold on to the notice your plan sends each year confirming it's creditable — you may need it later.

The deadlines that matter most in Linn County

Lebanon is in Linn County, and while Medicare's rules are federal, the deadlines apply the same way here as anywhere else:

• Initial Enrollment Period (IEP): A seven-month window — the three months before your 65th birthday month, your birthday month, and the three months after. This is your cleanest shot at avoiding penalties.
• General Enrollment Period: January 1 – March 31, for people who missed their IEP and don't qualify for a Special Enrollment Period. Coverage starts the month after you sign up.
• Special Enrollment Period (SEP): If you delayed Part B because you had job-based health coverage from active employment (yours or a spouse's), you generally get eight months after that coverage ends to sign up for Part B without a penalty.
• Annual Enrollment Period: October 15 – December 7, for changes to Part D and Medicare Advantage.
• Medicare Advantage Open Enrollment: January 1 – March 31, for people already in a Medicare Advantage plan.

A few 2026 and 2027 numbers worth knowing

Even if you avoid penalties, Medicare has other cost rules that will shape your year:

• Part D has a new $2,100 out-of-pocket cap for covered drugs in 2026.
• The Part D maximum deductible is $615.
• The old coverage gap — the "donut hole" — has been eliminated as of 2025, replaced by a simpler three-phase drug benefit.
• The Medicare Prescription Payment Plan lets you spread your out-of-pocket drug costs across the year in monthly installments, at no extra charge.
• IRMAA surcharges — higher premiums for higher earners — begin above $109,000 in income for a single filer in 2026.

How to avoid the penalty in the first place

The simplest strategy: don't guess. A few habits protect you.

1. Mark your Initial Enrollment Period on a calendar the year you turn 64. 2. If you're still working past 65, ask your HR department in writing whether your health plan and drug coverage are creditable for Medicare purposes. 3. If you retire or lose job coverage, start the Part B Special Enrollment Period paperwork right away — don't wait. 4. Even if you don't take prescriptions today, consider enrolling in a Part D plan when you're first eligible. A low-cost plan is often cheaper than a lifetime penalty.

For personalized help in Lebanon, Oregon's SHIBA program (Senior Health Insurance Benefits Assistance) offers free, one-on-one counseling from trained volunteers who don't sell insurance. You can also call 1-800-MEDICARE or visit medicare.gov.