Eliminate Medicare Part D Penalty With These Pro Tips
Pro Tips to Avoid the Penalty
1. Enroll Early
The most straightforward way to avoid the penalty is to enroll in a Medicare Part D plan as soon as you're eligible. The Initial Enrollment Period begins three months before you turn 65 and lasts for seven months, ending three months after your birthday month. By enrolling during this time, you ensure that you have continuous coverage without any gaps.
2. Consider Creditable Coverage
If you have other drug coverage, such as through an employer or union, ensure that it's considered "creditable." This means it's expected to pay, on average, at least as much as Medicare's standard prescription drug coverage. Employers and unions typically provide a notice of creditable coverage annually, which you should keep for your records2.
3. Use the Special Enrollment Period
Certain life events, such as moving out of your plan's service area, losing other creditable drug coverage, or qualifying for Extra Help, may qualify you for a Special Enrollment Period. This allows you to enroll in Part D without penalty outside of the usual enrollment periods3.
4. Explore Extra Help Programs
The Extra Help program assists individuals with limited income and resources to pay for Medicare prescription drug plan costs. If you qualify, you may not only reduce your drug costs but also avoid the penalty entirely. You can apply for Extra Help through the Social Security Administration4.