Late penalties: permanent, compounding, and avoidable
Medicare's late penalties are permanent: Part B adds 10% of the standard premium for each full 12-month period you delayed (for life), Part D adds 1% of the national base premium per month without creditable coverage (for life), and bought-in Part A adds 10% for twice the years you waited. Creditable coverage blocks them — and that's where veteran programs differ sharply.
The three penalties, with 2026 math
| Penalty | Formula | Example | How long it lasts |
|---|---|---|---|
| Part B | +10% of the standard premium per full 12-month period without B or creditable coverage | 3 years late: $202.90 + 30% ≈ $263.77/mo | Life — and it scales up as premiums rise |
| Part D | +1% of the national base premium ($38.99 in 2026) per month without creditable coverage | 30 months uncovered: ≈ $11.70/mo added, rounded to the nearest dime | Life — recalculated against each year's base premium |
| Part A (buy-in only) | +10% on the purchased premium, paid for twice the years you delayed | 2 years late: surcharge for 4 years | Time-limited — and irrelevant if your A is premium-free |
Two features make these uglier than they look: they're calculated against the current standard premium each year (so they grow), and the Part B latecomer also waits for the January–March GEP — paying the penalty and sitting uncovered in the meantime.
What blocks each penalty — the veteran scorecard
| Your coverage | Blocks the Part B penalty? | Blocks the Part D penalty? |
|---|---|---|
| VA Healthcare | No — the trap on this page | Yes — creditable while enrolled |
| TRICARE for Life | Moot — TFL requires B, so the question never arises | Yes — Express Scripts is creditable |
| CHAMPVA | Moot — Parts A & B required | Yes — CHAMPVA coverage is creditable |
| Employer plan, 20+ employees | Yes — with the 8-month SEP after | Yes, if the drug coverage is creditable (the plan must tell you annually) |
| Employer plan, under 20 | Generally no — Medicare is meant to pay primary | Depends on the plan's creditable status |
The asymmetry in row one is the most expensive misunderstanding in veterans' Medicare: VA coverage protects the drug side completely and the medical side not at all. Veterans who internalize that one row rarely meet these penalties.
If a penalty already attached
- Verify the count. Penalties run on documented gap months; proof of creditable coverage (VA enrollment letters, employer creditable-coverage notices) can shrink or erase them on reconsideration.
- Part D reconsiderations go through the plan's notice to an independent reviewer — respond by the deadline on the letter.
- Stop the bleeding now: penalties grow with every additional uncovered period. Enrolling at the next window caps the count where it stands.
- Extra Help erases Part D penalties — beneficiaries who qualify for the Low-Income Subsidy don't pay them.
If you're staring at a penalty letter — or trying to make sure you never get one — that's a ten-minute conversation with someone who reads these rules daily.
Talk to a Licensed AgentOr compare plans yourself at PlanMatch.com, or contact Medicare.gov / 1-800-MEDICARE.
Frequently asked questions
How much is the Medicare Part B late penalty?
Does VA Healthcare protect me from late penalties?
How is the Part D penalty calculated?
Can Medicare late penalties be removed?
You earned these benefits. Make them work together.
Whether you keep exactly what you have or add Medicare coverage alongside it, the right answer depends on your health, budget, and how you like to get care.
No cost, no obligation. You can also get help from Medicare.gov, 1-800-MEDICARE (TTY 1-877-486-2048), or your local SHIP office.