A Closer Look at Medicare Part D Penalty Details That Can Raise Costs for Years

An older adult reviews Medicare prescription drug plan information and enrollment deadlines while comparing medication costs at the kitchen table. Understanding Medicare Part D enrollment rules can help beneficiaries avoid late enrollment penalties and protect their retirement budget. In Green/Shutterstock

Missing your Medicare Part D enrollment deadline might not seem like a big deal, especially if you don’t take any prescription medications. But that decision can trigger a late enrollment penalty that follows you for as long as you have Medicare drug coverage. Because the surcharge is based on the number of months you go without creditable prescription drug coverage, even a relatively short delay can increase your monthly costs for years to come.

That being said, here is what every senior needs to know about the Medicare Part D penalty, and what you can do to avoid fees.