Prescription drug coverage (Part D)?
To have coverage for prescription drugs you would need to enroll in a Medicare Advantage plan that includes prescription drug coverage or a standalone prescription drug plan. Original Medicare and Medicare Supplement plans don’t provide the option of including prescription drug coverage.
What is the penalty for not adding Part D to my plan?
Medicare determines the amount of the penalty by taking the number of months you delayed adding Part D coverage to your plan and multiplying by 1%. For example, if you go 14 months without coverage, the penalty will be 14%. Then Medicare determines the amount of the average monthly premium for Medicare drug plans in the nation. In 2021 this average premium amount is $33.06. To calculate the monthly penalty, multiply the penalty percentage and the average monthly premium and round it to the nearest 10 cents. In the example here it would be 14% times $33.06, which equals $4.63. This rounds to $4.60. This amount would be added to the monthly premium for someone with a Part D late enrollment penalty.
The penalty is applied to your Medicare Part D premium after your initial enrollment period has ended and you’ve gone 63 consecutive days without either Medicare Part D coverage or some other form of creditable prescription drug coverage (often through an employer or union) that covers the same costs as standard Medicare Part D.