Understanding Medicare penalties – Chicago Tribune

Q: In your article listing frequently asked questions about Medicare, you mentioned the penalty for Part B if you don’t sign up when you’re first eligible. Isn’t there also a penalty if you don’t sign up for Part D prescription-drug coverage?

A: You’re right. You generally must sign up for Medicare Part D prescription-drug coverage when you first become eligible for Medicare at age 65 (the three months before through the three months after your 65th birthday).

You can sign up for Part D through a stand-alone plan or through a Medicare Advantage plan. But you aren’t required to sign up if you have “creditable” coverage from another source, such as drug coverage from an employer or retiree health insurance plan or from Tricare.

If you go for more than 63 days without creditable coverage, you’ll have to pay a late-enrollment penalty for every month you delay. The penalty equals 1 percent of the “national base beneficiary premium” ($35.63 in 2017) times the number of months you didn’t have Part D or creditable coverage.

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