Is there a Penalty for not enrolling in Medicare by age 65?

For each entire 12-month period when the beneficiary might have had Part B but did not enroll in Original Medicare or Medicare Advantage (MAPD), the Part B premium is raised by 10% for those who do not sign up for it when first eligible. The term "late enrollment penalty" refers to this. The penalties for late enrollment in Medicare Part A and Part B are as follows:

1. Late enrollment in Medicare Part A: Most people are eligible for Medicare Part A at age 65, and if you don't enroll during your Initial Enrollment Period (IEP), you may be subject to a late enrollment penalty. The Penalty for a Part A Late Enrollment is an additional 10% of the Part A premium for twice the number of years you were eligible for Part A but did not enroll.
2. Late enrollment in Medicare Part B: Most people are also eligible for Medicare Part B at age 65, and if you don't enroll during your IEP, you may be subject to a late enrollment penalty. The penalty is an additional 10% of the Part B premium for each full 12-month period you were eligible for Part B but did not enroll in Part B.
3. The late enrollment penalties for Part A and Part B are permanent, and you may have to pay them for as long as you have Medicare coverage. Medicare Part A & B Late Enrollment Penalties.

There is also Late Enrollment Penalties for Part D Prescription Drug coverage. Medicare Part D provides coverage for prescription drugs, and it is offered by private insurance companies approved by Medicare. If you don't enroll in a Part D plan when you are first eligible and you don't have other creditable prescription drug coverage (coverage that is as good as or better than Medicare's), you may be subject to a late enrollment penalty.

The late enrollment penalty is typically calculated based on how long you went without Part D or creditable prescription drug coverage. Medicare calculates the penalty by multiplying 1% of the national base beneficiary premium by the number of full, uncovered months you were eligible for Part D but didn't enroll. This penalty is added to your Part D premium for as long as you have Medicare prescription drug coverage.

There are some exceptions to the late enrollment penalties, such as if you had other health insurance coverage that was as good as or better than Medicare during your IEP, or if you qualify for a Special Enrollment Periods (SEP) due to a life event, such as losing your job-based health insurance.

To avoid late enrollment penalties, it's important to enroll in Medicare Advantage or Original Medicare during your Initial Enrollment Period, 3 Ways to Avoid Medicare Part D Late Enrollment Penalties. which is a seven-month window that begins three months before the month of your 65th birthday, includes the month of your birthday, and ends three months after your birthday month. It's very important to note that this penalty is avoidable if you enroll in a Part D plan when you are first eligible or during a Special Enrollment Period (SEP) if you qualify for one.