Understanding the Medicare Part D Late Enrollment Penalty

Did you know that delaying Medicare Part D enrollment could cost you extra every month? The late enrollment penalty is an important part of understanding your prescription drug coverage with Medicare. Here’s what you need to know:

• The late enrollment penalty is applied to members who did not enroll in a Medicare Part D plan when first eligible or did not have continuous creditable coverage for 63 or more days.
• For FEP Medicare Prescription Drug Program (MPDP) members, the penalty is added onto your monthly health premium, but is covered by the Office of Personnel Management (OPM). It remains for your lifetime.
• If you decide to disenroll from MPDP to join a new prescription drug program in the future, you will be responsible for any late enrollment penalty you previously had.

 

When a member is penalized, they will receive a Declaration of Prior Prescription Drug Coverage Letter letting them know of the penalty. The letter will also ask members to verify their past prescription drug coverage. It is very important to provide this information and return it by the date on the form. It provides an opportunity to update Medicare’s system and you may be able to avoid the penalty. If you believe you should not have gotten this penalty, you can submit a reconsideration request for Medicare to reassess the timing of your Part D enrollment. Make sure to submit your request within 60 days of the date that your late enrollment penalty was sent to you.

All FEP prescription drug benefits, including the FEP Medicare Prescription Drug Program (MPDP), are considered creditable coverage, which means they meet Medicare's minimum requirements. If you are or will be turning 65, make sure to enroll so you can save more on the prescriptions you need and avoid any penalties in the future. BCBS FEP is always here to help you learn more about Medicare and your health care coverage options.