Medicare Part D Plan In Peoria, AZ
Medicare Part D (Drug Plan)
Each Part D Plan Is Different
This means your:
- Copays vary
- Premiums vary
- Deductibles vary
- Formularies vary
What’s the Part D late enrollment penalty?
If you have a period of 63 or more days without Part D or other creditable drug coverage, you may have to pay a late enrollment penalty for as long as you have Part D. The late enrollment penalty is calculated each year by multiplying 1% of the national base beneficiary premium ($32.74 in 2020) by the number of full, uncovered months you were eligible.
Ms. Martinez’ enrollment period ended on May 31, 2016, and she did not have drug coverage from any other source. She delayed enrollment until the 2018 AEP with an effective date of January 1, 2019.
Ms. Martinez did not have creditable drug coverage from June 2016–December 2018, so she received a penalty for 2019 (31% of $33.19 or $10.30).
In 2020, Medicare recalculated Mrs. Martinez’s penalty using the 2020 base beneficiary premium ($32.74). So, Mrs. Martinez’s new monthly penalty in 2020 is 31% of $32.74 or $10.15 each month. Since the monthly penalty is always rounded to the nearest $0.10, she pays $10.20 each month in addition to her plan’s monthly premium.