Posted by MedEd at MHI
A: Big! And the later you are signing up, the bigger it gets. If you don’t sign up for Part B during your Initial Enrollment Period or, if you qualify, during a Special Enrollment Period, you’ll be charged a penalty for every 12-month period you are late. The penalty is 10% of the Part B monthly premium.
As an example, let’s say you signed up for Part B this year, but you should have enrolled four years ago. People who enroll on time will pay the standard $134 each month in 2018, but your total premium with the penalty added to it will be 40% higher than that.
You’re looking at $134 + ($134 x .4) = $187.60 each month in 2018. That’s just part of the bad news. Your penalty will be recalculated every year. When the Part B premium goes up, your penalty will increase as well. The penalty will continue for as long as you have Medicare. See why timing is so important when we talk about Medicare?