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Transcript:  Understanding the Medicare Part D penalty

Infographic

 

Understanding the Medicare Part D penalty

 

The penalty for Part D/prescription drug coverage is 1% of the average Part D premium multiplied by the number of months you are late enrolling. In 2018, the average premium was about $35 a month.

 

If you delay signing up for Part D by one year, here’s a look at how the penalty works:

$ .35 > 1% of standard Part D monthly premium (2018)

x 12 > Months in a year

­­­­= $4.20 > Additional amount you will pay each month

X 12 > Months in a year

= $50.40 > Amount additional you will pay annually

 

Over time, the penalty adds up. Here’s an example:

Joe signs up for Part D coverage at 65

Jack signs up for Part D coverage at 68

By the time they reach 85, Jack could pay at least $1,310 more than Joe for his Part D premiums – for three fewer years of coverage.

 

 

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Disclaimers

${company} Medicare is a PDP, HMO, PPO plan with a Medicare contract. Our SNPs also have contracts with State Medicaid programs. Enrollment in our plans depends on contract renewal.

See Evidence of Coverage for a complete description of plan benefits, exclusions, limitations and conditions of coverage. Plan features and availability may vary by service area.