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
coverage.
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.
