Medicare Part D

Bellevue Medicare Guide: Avoid Part B and Part D Late Fees

BELLEVUE, Wash. — Turning 65 comes with a stack of paperwork, and buried in that stack is a small but important decision: when to sign up for Medicare. Miss a deadline, and you could pay a penalty every month — not just once, but for as long as you have coverage.

Bellevue Seniors: Why Missing a Medicare Deadline Can Cost You for Life

The good news? These penalties are avoidable once you understand the rules. Here's what Bellevue residents need to know for 2027.

How the Part B Late-Enrollment Penalty Works

Medicare Part B covers doctor visits, outpatient care, and many preventive services. Most people become eligible around their 65th birthday and have a seven-month Initial Enrollment Period — the three months before, the month of, and the three months after they turn 65.

If you don't sign up during that window and you don't have other qualifying coverage (like a current employer's group health plan), you may owe a Part B late-enrollment penalty. According to CMS, the penalty adds 10% to your monthly Part B premium for every full 12-month period you could have been enrolled but weren't. And it usually sticks with you for as long as you have Part B.

If you delay because you're still working and covered by an employer plan, you generally qualify for a Special Enrollment Period when that coverage ends — no penalty. But you have to act within eight months of losing the job-based coverage.

How the Part D Late-Enrollment Penalty Works

Part D is prescription drug coverage. The penalty here works differently. If you go 63 days or more in a row without Part D or other "creditable" drug coverage (coverage that's at least as good as Medicare's), you may owe a penalty when you finally enroll.

The penalty is calculated as 1% of the national base beneficiary premium, multiplied by the number of full months you went without coverage. That amount is then added to your Part D premium — again, typically for as long as you have Part D.

Creditable coverage can come from an employer, a union, TRICARE, or the VA. If you have drug coverage from another source, keep the letter that says it's creditable. You'll want it later.

The 2027 Numbers Worth Knowing

Whether you're brand new to Medicare or reviewing your current plan, a few program-level facts matter heading into 2027:

• Part D out-of-pocket cap: $2,100 in 2026 and $2,400 in 2027.
• Maximum Part D deductible: $615 in 2026 and $700 in 2027.
• The coverage gap ("donut hole") is gone as of 2025 — Part D now has three phases instead of four.
• Medicare Prescription Payment Plan: an optional program that lets you spread your drug costs across monthly payments instead of paying big amounts at the pharmacy counter.
• IRMAA surcharges (higher premiums for higher earners) begin above $109,000 in income for a single filer in 2026.

A Local Snapshot: Bellevue and King County

Bellevue is in King County, where Medicare beneficiaries generally have a wide range of options during enrollment periods. Because Medicare Advantage and Part D plan availability is set at the county level, the specific list of plans offered in Bellevue is really the list offered across King County. You can see current options — and confirm what's available at your address — on the Medicare Plan Finder at medicare.gov.

If you want unbiased, one-on-one help, Washington's State Health Insurance Benefits Advisors (SHIBA) program is the local SHIP. Counselors don't sell plans; they help you understand yours.

Key Enrollment Windows to Circle

• Initial Enrollment Period: the seven months around your 65th birthday.
• General Enrollment Period: January 1 – March 31, for people who missed their initial window.
• Annual Enrollment Period (AEP): October 15 – December 7, when you can join, switch, or drop Medicare Advantage and Part D plans.
• Medicare Advantage Open Enrollment: January 1 – March 31, for people already in a Medicare Advantage plan who want to make one change.

Missing AEP won't create a penalty on its own, but it can leave you stuck with a plan that no longer fits your needs for another year.

How to Avoid the Penalties Altogether

A few simple habits go a long way:

1. Mark your Initial Enrollment Period on the calendar the year you turn 64. 2. Ask your employer's HR office whether your current health and drug coverage is "creditable" — and get it in writing. 3. Don't skip Part D just because you don't take medications now. Even a cheap plan protects you from the penalty later. 4. If you delay because you're still working, enroll within eight months of losing that employer coverage.