Penalty fees are never fun to pay and with little awareness of how to avoid them, or that they even exist, you can be left paying far more for your Part B and Part D premiums than originally planned. The easiest ways to avoid these penalties, you ask? We are here to tell you the best way to prepare for the fees and the possibilities of getting them waived:
Penalty fees occur when you enroll in a plan that has already passed by the Initial Enrollment Period window of 63 days. Once this happens you can be subject to paying the late enrollment penalty fee permanently on your coverage.
The late penalty fee for both Part B and D varies depending on how long you waited to enroll for coverage. Medicare will calculate the penalty difference and attach it to your monthly premiums and notify you of the additional cost.
While these fees can be hard to avoid if you miss your enrollment period, there are ways to be prepared for when you become eligible for Part B and Part D coverage.
- Ensure that you enroll in Part B and Part D when they become available to you. Even if you don’t need the coverage at the moment, you can find available plans with little to no monthly premiums that will keep you free from penalties in the future.
- If you lose previous creditable drug coverage, we recommend immediately enrolling in the Medicare drug coverage plan.
- Always keep track of your previous credible insurance plans through other providers. Having proof of coverage even when not through Medicare can save you on penalty fees in the future.
If you are being charged a penalty fee for your Part B and Part D coverage and you don’t agree with the penalty, you might be afforded a “reconsideration” for your case. In this situation, we recommend contacting Medicare and sending them any and all proof you might have to vouch for your penalty fees to be removed.
For more information or answers to your questions, call Senior Benefit Services at 1-800-627-2768 and talk with an agent or representative for help!
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