Medicare Part B helps cover doctor visits, outpatient care, preventive services, and more. But if you don’t sign up when you’re first eligible and don’t have other creditable coverage, you may face a late enrollment penalty.

When Does the Part B Penalty Apply?

You become eligible for Medicare at age 65. If you delay enrolling in Part B without qualifying employer or union coverage, Medicare may charge you a penalty when you do enroll—and it lasts for life.

How Much Is the Part B Penalty?

The penalty adds 10% to your Part B premium for every 12-month period you delayed enrollment. For example, if you waited two years, you’d pay 20% more every month.

How to Avoid It

To avoid the penalty:

• Enroll in Part B during your Initial Enrollment Period (around your 65th birthday)
• If you’re working, make sure your group coverage is considered “creditable”
• Enroll during a Special Enrollment Period if you’re coming off employer coverage