# Medicare Late Enrollment Penalties for Parts A, B and D

> How Medicare late enrollment penalties work for Part A, B and D, with the 2027 Part D math, who is exempt, and how Utah retirees avoid paying them for life.

Source: https://eseniorinsurance.com/learn/medicare-late-enrollment-penalties/
Last updated: 2026-10-26

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# Medicare Late Enrollment Penalties for Parts A, B and D

Medicare has three late penalties. Part B adds 10% to your premium for each full 12 months you could have enrolled but did not, usually for life. Part D adds 1% of the national base premium ($41.33 in 2027, up from $38.99 in 2026) for each month without creditable drug coverage, also for life. Premium Part A adds 10% for twice the years you delayed.

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## Let's set the stage

A late enrollment penalty is the one Medicare cost you can fully avoid, and it is also the one that follows you the longest. Most penalties I see come from one of three situations: someone kept working and assumed their job coverage counted, someone was on COBRA or a retiree plan and thought that was enough, or someone simply did not need drugs at 65 and skipped Part D. The rules are clear once you see them.

## The three penalties side by side

|  | Part B | Part D | Part A (only if you pay a Part A premium) |
| --- | --- | --- | --- |
| How it is figured | 10% of the standard premium for each full 12 month period you could have had Part B but did not | 1% of the national base beneficiary premium for each full month without creditable drug coverage | 10% added to the Part A premium |
| How long it lasts | Usually as long as you have Part B, for most people life | As long as you have Medicare drug coverage, generally life | Twice the number of years you could have had Part A but did not sign up |
| 2027 base number | 2027 standard premium pending; CMS publishes it in November ($202.90 in 2026, for comparison) | $41.33 national base beneficiary premium ($38.99 in 2026) | 2027 premium pending; CMS publishes it in November ($311 or $565 in 2026) |

Sources: Medicare.gov, Avoid late enrollment penalties and Part D late enrollment penalty; CMS Part D 2027 national average monthly bid amount fact sheet (July 28, 2026); CMS 2026 fact sheet for the comparison amounts.

## Part B penalty: the math

Medicare.gov's own example: if you waited 2 full years (24 months) to sign up for Part B and did not qualify for a Special Enrollment Period, your penalty is 20%. The 2027 standard premium is pending until CMS publishes it in November, so here is last year's math for comparison: in 2026 that was $202.90 plus $40.58, or $243.50 a month after rounding. Because the penalty is a percentage of each year's standard premium, it grows as the premium grows, and we will add the 2027 dollar figure the day CMS publishes it.

Here's the thing. The penalty counts only full 12 month periods. Waiting 23 months is one period, so 10%. Waiting 24 months is two periods, so 20%.

## Part D penalty: the math

Multiply 1% of the national base beneficiary premium by the number of full months you went without Part D or other creditable drug coverage after your Initial Enrollment Period ended. The result is rounded to the nearest $0.10 and added to your monthly drug premium.

| Months without creditable coverage | Penalty percentage | Monthly penalty in 2027 (base $41.33) | 2026, for comparison (base $38.99) |
| --- | --- | --- | --- |
| 6 | 6% | $2.48, rounded to $2.50 | $2.30 |
| 14 | 14% | $5.79, rounded to $5.80 | $5.50 |
| 36 | 36% | $14.88, rounded to $14.90 | $14.00 |

The 14 month row follows Medicare.gov's example, recalculated with the 2027 base. CMS set the 2027 national base beneficiary premium at $41.33 in its July 28, 2026 fact sheet. The base premium changes every year, so the dollar amount of your penalty can change each January even though your percentage does not.

## Part A penalty: who it applies to

Most people never see this one. If you or your spouse worked about 10 years paying Medicare taxes, Part A is premium-free and there is no Part A penalty. It only applies if you have to buy Part A and did not sign up when you were first eligible. Medicare.gov's example: if you were eligible for 2 years and did not sign up, you pay the 10% higher premium for 4 years.

## When you do not owe a penalty

-   **You had job-based coverage from current work.** If you or your spouse are still working and covered by that employer's group plan, you can delay Part B and use the 8 month Special Enrollment Period after the job or coverage ends, whichever comes first.
-   **You had creditable drug coverage.** Drug coverage that is expected to pay at least as much as standard Part D, such as many employer, union, TRICARE or VA plans, protects you from the Part D penalty. Your plan sends a notice each year saying whether it is creditable. Keep it.
-   **You get Extra Help.** People who qualify for Extra Help do not pay the Part D late penalty.
-   **You are in a Medicare Savings Program.** Medicare.gov says you generally do not pay the Part B penalty if you enroll in one.
-   **A gap of less than 63 days.** For Part D, a break in creditable coverage shorter than 63 days in a row does not trigger the penalty.

## The traps I see most often in Utah

1.  **COBRA.** COBRA is not coverage from current employment. It does not give you the 8 month Special Enrollment Period for Part B. If you are 65 or older and only have COBRA, the clock is running.
2.  **Retiree coverage.** Retiree health plans are not current employment either. Many retiree plans also expect Medicare to pay first.
3.  **Small employers.** If your employer has fewer than 20 employees, Medicare usually pays first, and the employer plan may expect you to have Part B. Ask the plan in writing.
4.  **Health savings accounts.** If you keep working and contributing to an HSA, enrolling in any part of Medicare ends your ability to contribute. Premium-free Part A can be backdated up to 6 months, so stop HSA contributions ahead of time. Talk to your tax professional on this one.
5.  **"I don't take any drugs."** Skipping Part D because you are healthy at 65 is a bet that you will stay that way. A low premium drug plan is usually the cheaper insurance against a lifelong penalty. In Utah the lowest 2027 stand-alone Part D premium in the CMS landscape is $5.30 a month.

## What a late start costs over time

An illustrative example. A retiree in Provo had no job coverage and no drug coverage and waited 24 months past his Initial Enrollment Period to sign up for Part B and Part D. The Part D piece uses the 2027 base premium. The 2027 Part B premium is pending until CMS publishes it in November, so the Part B row shows last year's amount for comparison.

| Penalty | How it is figured | Extra each month in 2027 | Extra per year in 2027 | 2026, for comparison (per year) |
| --- | --- | --- | --- | --- |
| Part B | 20% of the standard premium (Medicare.gov example) | Pending; CMS publishes these in November | Pending | $487.20 (20% of $202.90, $40.60 a month) |
| Part D | 24% of $41.33 = $9.92, rounded | $9.90 | $118.80 | $112.80 ($9.40 a month) |

In 2026 the two penalties together came to about $600 for the year. In 2027 the Part D piece alone rises to $118.80, and both penalties generally last as long as he has the coverage. Because they are percentages, the dollar amounts usually rise as premiums rise.

## Does my coverage count?

| Coverage you have at 65 | Lets you delay Part B without penalty? | Creditable for Part D? |
| --- | --- | --- |
| Group plan from current work, employer with 20 or more employees | Generally yes | Only if your plan's notice says it is creditable |
| Group plan from current work, fewer than 20 employees | Risky; Medicare usually pays first. Ask the plan in writing | Check the notice |
| COBRA | No | Check the notice |
| Retiree coverage | No | Check the notice |
| ACA Marketplace plan | No | Not a substitute for Part D once you have Medicare |
| VA health care | No; VA coverage does not create a Part B Special Enrollment Period | Yes, VA drug coverage is creditable |

Sources: Medicare.gov, Working past 65 and Part D late enrollment penalty. When in doubt, get the answer in writing from your plan before you skip anything.

## Already have a penalty? What you can do

-   **Part D:** you can ask for a reconsideration if you think the penalty is wrong, for example if you had creditable coverage. Medicare.gov says you generally have 60 days from the date on the letter. Gather your creditable coverage notices first.
-   **Part B:** Social Security handles Part B enrollment and penalties. If you had employer coverage, the employer completes form CMS-L564 to prove it.
-   **Check Extra Help and Medicare Savings Programs.** If your income is limited, qualifying can remove the penalty going forward. See  [Medicare vs Medicaid](https://eseniorinsurance.com/learn/medicare-vs-medicaid/) .

If you are turning 65 or leaving a job in Utah and are not sure whether your coverage counts, call us before you decide. It is a five minute question that can save a lifetime of extra premiums.

## Frequently asked questions

**How is the Medicare Part B late enrollment penalty calculated?**

You pay an extra 10% of the standard Part B premium for each full 12 month period you could have had Part B but did not sign up. For most people the penalty lasts as long as they have Part B.

**How much is the Part D late enrollment penalty in 2027?**

It is 1% of the national base beneficiary premium ($41.33 in 2027, up from $38.99 in 2026) times the number of full months you went without creditable drug coverage, rounded to the nearest $0.10. Fourteen months without coverage adds about $5.80 a month in 2027.

**Does COBRA count to avoid the Medicare Part B penalty?**

No. COBRA is not coverage based on current employment, so it does not qualify you for the Part B Special Enrollment Period. Sign up for Part B when you are first eligible even if you have COBRA.

**Can a Medicare late enrollment penalty be removed?**

You can request a reconsideration of a Part D penalty, generally within 60 days of the letter, if you had creditable coverage. Qualifying for Extra Help removes the Part D penalty, and Medicare Savings Programs generally remove the Part B penalty.

## Sources

1.   [Medicare.gov: Avoid late enrollment penalties](https://www.medicare.gov/basics/costs/medicare-costs/avoid-penalties)
2.   [Medicare.gov: Part D late enrollment penalty](https://www.medicare.gov/drug-coverage-part-d/costs-for-medicare-drug-coverage/part-d-late-enrollment-penalty)
3.   [CMS fact sheet: 2026 Medicare Parts A and B premiums and deductibles (November 14, 2025)](https://www.cms.gov/newsroom/fact-sheets/2026-medicare-parts-b-premiums-deductibles)
4.   [CMS fact sheet: Medicare Part D 2027 national average monthly bid amount information (July 28, 2026)](https://www.cms.gov/newsroom/fact-sheets/medicare-part-d-2027-national-average-monthly-bid-amount-information)
5.   [Medicare.gov: Help with drug costs (Extra Help)](https://www.medicare.gov/basics/costs/help/drug-costs)
6.   [Medicare.gov: Medicare Savings Programs](https://www.medicare.gov/basics/costs/help/medicare-savings-programs)
7.   [Medicare.gov: Working past 65](https://www.medicare.gov/basics/get-started-with-medicare/medicare-basics/working-past-65)

Updated October 26, 2026 by the Everything Senior Insurance Data Desk.

## Keep reading

-    [Medicare Learning Center for Utah: Guides and Answers](https://eseniorinsurance.com/learn/)
-    [Medicare Enrollment Periods Explained: Every Window and Date](https://eseniorinsurance.com/learn/medicare-enrollment-periods/)
-    [Turning 65 Medicare Checklist: What to Do and When](https://eseniorinsurance.com/learn/turning-65-medicare-checklist/)
-    [How to Enroll in Medicare: Step by Step for Utah](https://eseniorinsurance.com/learn/how-to-enroll-in-medicare/)
-    [Medicare Costs in 2027: Premiums, Deductibles and Part D](https://eseniorinsurance.com/learn/medicare-costs/)
-    [Part d](https://eseniorinsurance.com/part-d/)

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