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Part B Late Enrollment Penalty
The Part B late-enrollment penalty is 10% of the standard premium for each full 12-month period you could have had Part B but didn't. It's added to your premium for as long as you have Part B — it never expires. Against the 2026 standard premium of $202.90, each full year late adds about $20.29 a month, permanently.
How the penalty is calculated
Medicare counts each full 12-month period you could have had Part B but didn't, and adds 10% of the standard premium for each one. Two years late is 20%, three years is 30%, and so on — applied to the standard premium each year, so it rises as the premium rises.
What it costs in real money
| Years late | Penalty | Added per month (2026) |
|---|---|---|
| 1 | 10% | $20.29 |
| 2 | 20% | $40.58 |
| 3 | 30% | $60.87 |
| 5 | 50% | $101.45 |
Based on the 2026 standard premium of $202.90 from the CMS fact sheet.
When the penalty does not apply
If you had coverage from active employment at an employer with 20 or more staff, you get a Special Enrollment Period of 8 months after the employment or the group coverage ends, whichever comes first and no penalty. Retiree coverage, COBRA, marketplace plans, and VA coverage do not protect you — see Medicare.gov.
The second cost of enrolling late
Beyond the penalty, you may wait months for coverage: without a Special Enrollment Period you enrol during January 1 – March 31 with coverage starting the month after.
If you think it was applied wrongly
You can appeal. If you had qualifying employer coverage, form CMS-L564 signed by your employer is the evidence. Contact Social Security — it's worth doing, because the penalty otherwise lasts for life.
Estimates only
This is an estimate using published federal figures; Social Security determines the actual amount.
Not sure which of these fits you? A free 15-minute call with a licensed local advisor sorts it out — no pressure, and no cost to you. We do not offer every plan available in your area. For a complete list of every plan in your county, use Medicare Plan Compare or call 1-800-MEDICARE.
Questions, answered
Does the Part B penalty ever go away?
No. It's added to your premium for as long as you have Part B. That permanence is what makes enrolling on time so important.
Does VA coverage protect me from the Part B penalty?
No. VA coverage is not coverage from active employment, so it doesn't create a Special Enrollment Period. Most veterans enrol in Part B at 65 for exactly this reason.
Can I appeal a penalty?
Yes. If you had qualifying employer coverage, submit form CMS-L564 signed by your employer to Social Security along with your request.
Sources
- CMS — 2026 Medicare Parts A & B Premiums and Deductibles
- Medicare.gov — Working past 65
- Medicare.gov — When can I sign up for Medicare?
- SSA — Sign up for Medicare
Figures are for 2026 and come from the official sources above. Plan-specific costs vary by county and carrier — confirm yours on Medicare Plan Compare or with a licensed agent.
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Content reviewed by Brian Penner, Independent Medicare advisor — no pressure.