Medicare Part D Penalty Calculator

by | Nov 28, 2013 | Medicare, Medicare Part D, Waugh Agency

How much will my Medicare Part D late enrollment penalty be?

Use the Waugh Agency Medicare Part D penalty calculator below to estimate your Part D penalty.

What is the Medicare Part D late enrollment penalty?

If you do not  enroll in Part D when you are first eligible for Medicare, you may have to pay the Medicare Part D late enrollment penalty (Part D LEP, or LEP). You may also face the LEP if, at any time after your initial enrollment period is over, there’s a period of 63 or more days in a row when you don’t have Part D or other creditable prescription drug coverage .  The late enrollment penalty/LEP is an amount added to your Medicare Part D premium.

How is the Medicare Part D LEP calculated?

The late enrollment penalty is calculated by multiplying 1% of the “national base beneficiary premium” ($32.42 in 2014; $31.17 in 2013) times the number of full, uncovered months you were eligible but didn’t join a Medicare Prescription Drug Plan and went without other creditable prescription drug coverage. The final amount is rounded to the nearest $.10 and added to your monthly premium.Medicare Part D Penalty Calculator

How will I know if I owe a Medicare Part D penalty?

Waugh Agency will help you determine whether or not you are likely to be assesed the LEP, and what the maximum is likely to be, and the Plan- working in coordination with CMS (Center for Medicare Services)- will tell you the final amount.  You may have to pay this penalty for as long as you have a Medicare drug plan.  Waugh Agency handles appeals with CMS and the plans we represent, as needed. Call us at (413)527-0300 or toll free (800)779-4090 today.