What is the Part D late enrollment penalty?
The Part D late enrollment penalty is an extra monthly charge for going 63 or more days without creditable drug coverage. You pay it for as long as you have Part D.
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Goes deeper on: When do I need to sign up for Medicare? (Medicare Clarity Guide)
The short version
- It's added to your monthly drug plan premium. It isn't a one-time charge.
- It applies if, after your Initial Enrollment Period (your first window to join) is over, you go 63 or more days in a row with no Medicare drug coverage or other creditable drug coverage.
- The amount can change each year, because the base premium it's worked out from changes each year.
- If you think your penalty is wrong, you can ask for a review. Medicare.gov's penalty page covers it.
How it's worked out
Medicare takes 1% of the national base beneficiary premium for each full month you could have joined but didn't, and had no other creditable drug coverage. It rounds the result to the nearest 10 cents and adds it to your monthly premium. For example, 14 full months works out like this:
| 14 full months without coverage | 2026 | 2027 |
|---|---|---|
| National base beneficiary premium | $38.99 | $41.33 |
| 14% of that | $5.46 | $5.79 |
| Added to your monthly premium (rounded) | $5.50 | $5.80 |
The base premium changes every year, so the penalty amount can change each year too. The 2027 column uses the base CMS announced on July 28, 2026.
Who doesn't pay it
- People who get Extra Help. They don't pay a late enrollment penalty.
- People who have creditable drug coverage with no gap of 63 or more days. Creditable means Medicare accepts it as at least as good as standard Part D. It can come from a job, a union, a retiree plan and some other sources. Your plan's yearly notice tells you whether it counts.
When to sign up for a drug plan, including if you're still working, is in step 2 of our Medicare guide.
Your next step
A licensed support agent can look at your dates with you.
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- Creditable drug coverage
- Drug coverage Medicare counts as at least as good as Part D, like many job, union or retiree plans. Your plan's yearly notice says if yours counts.
- Extra Help
- A Medicare program that helps people with limited income and savings pay for drugs.
- Initial Enrollment Period
- Your first window to join Medicare: the 7 months around your 65th birthday.
- Part D
- Medicare's coverage for prescription drugs. It's its own plan, or built into some Medicare Advantage plans.
Sources
All 2 checked October 7, 2026.