Imagine Mark from Marshall. When Mark turned 65, he was healthy and decided to skip Medicare Part B to save on the monthly premium. He figured he’d just sign up later if his health changed.
Three years (36 months) later, Mark decided it was time to enroll. Because he missed his Initial Enrollment Period (IEP) without having “creditable” employer coverage, he was hit with the Part B Late Enrollment Penalty:
- The Penalty: 10% for every 12-month period he delayed.
- The Calculation: 3 years late = 30% permanent surcharge.
- The 2026 Cost: Instead of paying the standard $202.90 monthly premium, Mark now pays $263.77 ($202.90 + $60.87 penalty).
The Kicker: This isn’t a one-time fine. Mark will pay that extra $730+ per year for as long as he has Medicare. Over a 20-year retirement, that “saving” at age 65 will cost him over $14,000 in avoidable penalties.