PAN mentioned in article on Part D late enrollment penalty

More than 68 million people in the U.S. are enrolled in Medicare, but not all enrollees opt to sign up for a Medicare Part D prescription drug benefit plan when they become eligible. Patients who do not enroll in a Medicare Part D drug plan incur a 1 percent penalty for every month they didn’t have coverage, and the penalty fee applies for as long as you have Medicare drug coverage, even if you switch plans.

For example, if you wait six months after being eligible for Medicare to join a Part D plan, you will incur a 6 percent late enrollment penalty each month for as long as you have a Part D plan, which for most people is lifetime. In this example, that means you would end up paying an additional $2.20 per month in 2025.

In a recent U.S. News Health article that explains the Part D penalty and how to avoid it, PAN chief mission officer Amy Niles offers her expert insight. “As long as you pay the penalties, your coverage is not delayed,” Niles explains. “You have the right to appeal a decision you believe to be incorrect about a late enrollment penalty.”

According to the article and to Medicare.gov, you can get the Medicare Part D late enrollment penalty waived if you qualify for the Extra Help program, if you’ve proven that you already receive prescription drug coverage from another creditable source, or, in certain cases, if you have lost your employer-paid coverage.

The article urges patients to stay vigilant for better coverage by understanding what is included in their Part D plans and avoiding choosing one that doesn’t cover needed medications.