Posts Tagged ‘Prescription drugs’

Part D Penalty

If you or your family member is considering not participating in the

Medicare Part D program during the initial enrollment period, there may be

a penalty upon participation. This penalty is determined as 1% of the

premium, multiplied by the number of calendar months declined from initial

enrollment offering to actual enrollment unless you have other creditable


To estimate the penalty, find the national base beneficiary premium

for the year ($30.36 in 2009, $31.94 in 2010) and take 1% of that ($.30 in

2009, $0.32 in 2010). Multiply it by the number of uncovered, full calendar

months (during any continuous period of 63 days or more), since the

end of your initial enrollment period (IEP), during which you did not have

creditable coverage. Take the answer and round it to the nearest 10 cents.

This amount will be added to your plan’s premium amount even if the

plan’s premium is $0. Your penalty will change each year that the national

average premium changes.

For more information, contact your local Social Security office.

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