Medicare
Medicare Late Enrollment Penalty
The Medicare late enrollment penalty increases Part B premiums by 10% per year of delay and Part D premiums by 1% per month without creditable coverage — and these surcharges last for life.
Last reviewed: May 2026 · Editorial methodology
Definition
The Medicare late enrollment penalty (LEP) is a permanent surcharge applied to monthly premiums for Medicare Part B and/or Part D when a beneficiary delays enrollment beyond their Initial Enrollment Period without maintaining qualifying coverage. For Part B, the penalty is 10% of the current standard Part B premium ($202.90 in 2026) for each full 12-month period during which the beneficiary was eligible for Part B but not enrolled and not covered by employer group health insurance through active employment. This 10% increment per year is added permanently — a beneficiary who delayed two years pays 20% extra for life. For Part D, the penalty is 1% of the national base beneficiary premium ($36.78 in 2026) multiplied by the number of full months the person went without Part D or other creditable prescription drug coverage. The Part D penalty also lasts for the beneficiary's lifetime, though it is recalculated annually as the base premium changes. Creditable coverage from an employer, VA, TRICARE, or other qualified source prevents penalties from accruing.
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Cover Forge USA Editorial Team
Editorial Lead
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed 2026-06-14
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