Part D late enrollment penalty calculator
The Part D penalty is 1% of the national base beneficiary premium ($38.99 for 2026) for every full month you were eligible for Medicare drug coverage but had neither a plan nor other creditable drug coverage. Small percentage, but it compounds monthly and lasts for as long as you have drug coverage.
Usually the end of your Initial Enrollment Period (3 months after your 65th birthday month), or the month your employer's creditable drug coverage ended, whichever came later.
If you haven't joined yet, leave today's date to see the penalty as of now.
Employer or union coverage certified as creditable, VA drug coverage, TRICARE. These months do not count against you.
For 2026 the national base beneficiary premium is $38.99 (CMS, July 2025 announcement). Medicare rounds the penalty to the nearest $0.10 and adds it to your plan's premium; the amount is recalculated each year as the base premium changes. Estimate is educational; your plan and Medicare determine the official amount.
Part D penalty questions
What counts as creditable drug coverage?
Drug coverage at least as good as standard Medicare Part D. Common examples: employer or union plans that certify creditable status each year, VA drug coverage, and TRICARE. If you had creditable coverage, those months do not count toward the penalty.
Does the Part D penalty ever go away?
Generally no. Once assessed, it is added to your premium for as long as you have Medicare drug coverage. It is also recalculated each year against that year's national base beneficiary premium, so the dollar amount changes over time.
I don't take any medications. Do I still need Part D?
You are not required to enroll, but every month without creditable coverage adds to a permanent penalty if you enroll later. Many people in this situation pick the lowest-premium plan available in their county to stay covered and penalty-free. Florida has $0-premium basic plans for 2026, which can make the math easy.
How do I avoid the penalty when I retire after 65?
Enroll in a Part D plan within 2 months of losing your employer's creditable coverage. Keep the annual creditable-coverage notices your employer sends; they are your proof if Medicare ever asks.
Related reading: How much is the Part D late enrollment penalty? · VA drug coverage counts as creditable · See the $0-premium Part D options in your Florida county
We do not offer every plan available in your area. Currently we represent 10 organizations which offer 90 products in your area. Please contact medicare.gov, 1-800-MEDICARE, or your local State Health Insurance Program (SHIP) to get information on all of your options.
A penalty letter, or a gap you're not sure about?
Bring us your timeline. Sometimes the months don't actually count, sometimes a $0-premium plan stops the meter today. Either way you'll know where you stand. Free, no pressure.
- No cost to you
- RSSA® · CMIP®
- No pressure, ever