Medicare Late Enrollment Penalty — LEP
Medicare's Late Enrollment Penalty is an extra monthly cost added to your Part B or Part D premium for life if you sign up late without other valid coverage.
Official source: medicare.gov
The Medicare Late Enrollment Penalty is an extra amount you pay each month. This amount is added to your Medicare Part B or Part D bill. You get this penalty if you do not sign up for Medicare when you first can. This extra cost stays with you for as long as you have Medicare.
This penalty applies to people who wait to sign up for Medicare Part B or Part D. You might have to pay it if you did not have other good health coverage when you could have signed up for Medicare. For example, if you stopped working and lost your health insurance, but waited many months to sign up for Medicare, you could get this penalty.
It is important because it makes your Medicare more expensive. This extra payment is added to your regular Medicare payment every month. Over time, these extra costs can add up to a lot of money. The penalty is meant to encourage people to sign up for Medicare right away when they are first able to.
If you are worried about a late enrollment penalty, you can contact Medicare directly. They can help you understand your options. You can call them at 1-800-MEDICARE (1-800-633-4227).
In real life
- A retiree who waited 24 months to start Part B pays a 20% late penalty for life.
- Sarah forgot to sign up for Medicare Part D when she turned 65. Now she pays a little extra each month for her prescription drug coverage because she waited.
- David's old job had good health insurance, so he didn't join Medicare Part B right away. Years later, he pays a higher monthly fee for his medical care.
Also known as
Take the next step
Frequently asked questions about Medicare Late Enrollment Penalty
What is Medicare Late Enrollment Penalty?+
Medicare's Late Enrollment Penalty is an extra monthly cost added to your Part B or Part D premium for life if you sign up late without other valid coverage.
Who qualifies for Medicare Late Enrollment Penalty?+
Most people 65+, plus some younger people with qualifying disabilities or end-stage renal disease.
How do I apply for Medicare Late Enrollment Penalty?+
Most people are enrolled automatically at 65. To pick a plan or sign up manually, go to medicare.gov or call your free SHIP counselor. Official forms and instructions: https://www.medicare.gov/basics/costs/medicare-costs.
Where can I get help?+
Call your free State Health Insurance Assistance Program (SHIP) for one-on-one Medicare counseling at no cost, or compare plans at medicare.gov.
Source: medicare.gov