What is the Part D late enrollment penalty in 2026?
The Part D late enrollment penalty in 2026 is 1% of the $38.99 national base beneficiary premium for every full month you went without creditable drug coverage, about $4.70 a month for each year late, added to your premium for as long as you have Part D.
It applies if you went 63 days or more in a row without Part D or other creditable drug coverage after your Initial Enrollment Period ended. The base premium is reset each year, so the dollar amount can change even though your months do not.
| Months without coverage | Penalty rate | Added each month | Added per year |
|---|---|---|---|
| 12 months (1 year) | 12% | $4.70 | $56.40 |
| 24 months (2 years) | 24% | $9.40 | $112.80 |
| 36 months (3 years) | 36% | $14 | $168 |
| 60 months (5 years) | 60% | $23.40 | $280.80 |
How the penalty is calculated
Medicare counts the full months you were eligible but had no creditable drug coverage, multiplies by 1% of the national base beneficiary premium ($38.99 in 2026), and rounds to the nearest 10 cents. The result is added to whatever Part D or Medicare Advantage drug plan you join.
What avoids or reduces it
Creditable coverage: drug coverage from an employer, union, VA, TRICARE or similar that is expected to pay at least as much as standard Part D. Your employer or plan sends a yearly notice saying whether it is creditable; keep it. People who qualify for Extra Help do not pay the penalty.
If you think the penalty is wrong, you can ask your plan for a reconsideration within the deadline in your penalty letter.
What to do next
If you are past 65 without creditable coverage, enrolling during Annual Enrollment (October 15 to December 7, 2026) stops the months from adding up. Our Part D penalty calculator estimates the amount, and we can check your creditable coverage letters with you in Chandler.
Related questions
What is the Part D late enrollment penalty in 2026?
The Part D late enrollment penalty in 2026 is 1% of the $38.99 national base beneficiary premium for every full month you went without creditable drug coverage, about $4.70 a month for each year late, added to your premium for as long as you have Part D.
Does the Part D penalty ever go away?
Generally no. It lasts as long as you have Medicare drug coverage, except for people who qualify for Extra Help.
Does VA coverage count as creditable?
Yes. VA drug coverage is creditable, so you can delay Part D without a penalty while you have it.
What is the 2026 national base beneficiary premium?
$38.99 a month. CMS sets a new figure each year.
Sources
- Medicare.gov: Part D late enrollment penalty Centers for Medicare & Medicaid Services
Please note: We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov, 1-800-MEDICARE, or your local State Health Insurance Program (SHIP) to get information on all of your options.Rise Up Benefits Group is not connected with or endorsed by the United States government or the federal Medicare program. Medicare has neither endorsed nor reviewed this information.
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