Definition. A permanent increase in your Part B or Part D premium for enrolling after you were first eligible, without employer group coverage (Part B) or creditable drug coverage (Part D) in the meantime.
What it means
- Part B: your premium goes up 10% for each full 12-month period you could have had Part B but didn't. You don't pay it if you delayed because you had group coverage from your or your spouse's current job.
- Part D: if you go 63 days or more in a row without Part D or creditable drug coverage after your Initial Enrollment Period, Medicare adds 1% of the national base beneficiary premium ($38.99 in 2026) for each full month without coverage, rounded to the nearest 10 cents. The base premium changes every year, so the penalty can too.
- Part A: if you must buy Part A and sign up late, the premium can go up 10% for twice the number of years you waited.
You can avoid penalties by keeping qualifying coverage and saving its notices. People with Extra Help don't pay the Part D penalty.
In Oregon
Oregon's Medicare Savings Programs have no asset limit, and anyone who gets one also gets Extra Help automatically, which removes the Part D late enrollment penalty. If you have limited income, apply through ONE.Oregon.gov or 1-800-699-9075. See Medicare Savings Programs in Oregon.
Sources
- Medicare.gov — Avoid late enrollment penalties
- Medicare.gov — Creditable drug coverage
- Medicare.gov — Help with drug costs (Extra Help)
- CMS — 2026 Medicare Parts A & B premiums and deductibles
Frequently asked questions
Can I appeal a Part D late enrollment penalty?
Yes. If you had creditable drug coverage that wasn't counted, ask for a reconsideration using the form your plan sends with the penalty notice, usually within 60 days, and include proof such as your creditable coverage notices.
Medicare in your Oregon county
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