Medicare Advantage Plans

Starting At $0/ Month

Just give us a little information,
and find out if you have $0 Premium Plans in your area.

Do I Need to Sign Up For Medicare Part D to Avoid Paying a Penalty?

Whether or not you take prescription drugs, you may want to consider your options carefully when it comes to joining Medicare Part D. Unless you have other, creditable coverage offered through work or a union, going without prescription drug benefits may end up costing you money. Do you have to join a Medicare Part D to avoid extra fees? Part D coverage is optional, but without the right guidance, you could end up paying a higher premium from a late enrollment penalty. Here’s some information on Part D coverage and what you should know if you are approaching your Initial Enrollment Period. 

How to Avoid the Part D Penalty

Joining Medicare Part D, or prescription drug coverage, is optional. However, joining late may trigger a penalty. How do you avoid the Part D penalty?

  • Join Part D when you are first eligible, during your Initial Enrollment period.
  • Maintain creditable coverage (other prescription drug coverage) through an employer, union or other health insurance provider.

If you do not currently have prescription drug benefits through an employer or other source, the best time to join Medicare Part D is when you are first eligible, during your Initial Enrollment period. Even if you do not need medications now, joining during Initial Enrollment ensures you avoid paying a late enrollment penalty.

Not everyone needs to join Medicare Part D when they are first eligible, and there are many seniors who delay enrollment without paying a penalty. Many employer provided health insurance plans offer drug coverage that is considered “creditable” by Medicare.

If you do have drug benefits, as long as you are covered, you do not need to join Medicare Part D. However, if you lose coverage (employer benefits end or COBRA ends) you only have a certain amount of time to join Part D without penalty.

Your health insurance provider will let you know if your coverage is creditable. Be sure to keep this documentation safe as you will need to show it to Medicare when you are ready to join Part D. Without proof, you may end up paying a late enrollment penalty.

If You are Penalized, Here’s How to Calculate Your Premium 

If you go without a Medicare prescription drug plan (Part D) or other creditable coverage for 63 days or more after your Initial Enrollment period ends, you may owe a late enrollment penalty. Penalties are calculated by multiplying the Part D premium amount by the number of full months you went without Part D or creditable drug coverage.

 

Resources:

Part D Penalty:  https://www.medicare.gov/part-d/costs/penalty/part-d-late-enrollment-penalty.html

MUC56-2017-BCBS

Leave a Reply

Your email address will not be published. Required fields are marked *

Testimonial Brittany, You’ve done an excellent job and we’ve already been approved and have our cards. Jack Corman, Oklahoma City
Testimonial “Chad was very helpful with everything. Each time I dealt with Chad, he was wonderful! He was honest and when he said he’d get back to me, he did.” Robert Brashers, Claremore
Testimonial “Really simple process, a lot easier than filling it all out alone. Marc has been a lot of help and it’s nice that he checks in from time to time to make sure all is good. “ Shellie Wakat, Tulsa

Latest News

Read all the news

Medicare Part A and B Explained

Like most seniors, there’s a good chance you’ve heard of Medicare – you may even know that it’s a federally…
Read more

Why Choose Consumers Direct Insurance Services of Oklahoma?

Looking for a unique and genuine insurance experience? We’re here to help! We know that dealing with insurance isn’t always…
Read more

Is Medicare a Advantage Good Deal?

Medicare Advantage (MA or Part C), is a popular alternative to traditional Medicare. Since 2010, enrollment increased by 71 percent,…
Read more

Medicare Annual Enrollment Period – 5 Questions and Answers

The annual Enrollment Period (AEP), is the one time of year when you can make changes to an existing Medicare…
Read more

When Can I Enroll In a Medicare Advantage Plan?

Now that you’ve decided to join Medicare Advantage (Part C) as a way to receive your Medicare benefits, you may…
Read more