Enrolling in Medicare Part D late will mean late fees; Covering; The Bases

I turned 65 in March 2016. Since I was not taking any medicines, I did not elect Medicare Part D. This past year, I developed diabetes and began an expensive medicine regime. I enrolled into Part D and it will begin January 2019.

However, I was informed that I will have a penalty because I did not enroll into Medicare back in 2016. Why is this so, and how much to I need to pay?

Medicare Part D imposes a late enrollment penalty if a person does not either enroll into Part D within the three months following their 65th birth-month, or maintain other prescription drug insurance that is documented to be "creditable" coverage (meaning it is "as good or better" than the standard Medicare Part D coverage).

The late enrollment penalty is calculated on the number of months you were eligible for Medicare Part D and did not enroll into Part D (or did not carry creditable drug coverage). Since you turned 65 in March 2016, you had until June 2016 to enroll into Part D under your initial enrollment period. Your Part D begins January 2019. Therefore, you have 30 months that will count toward your penalty.

The number of months will be multiplied by 1 percent of the national base beneficiary premium. The national base premium for 2019 is $32.50; 1 percent is .3250.

The number of months multiplied by the 1 percent of the national base beneficiary premium: 30 x .3250 = 9.75. Medicare rounds to the nearest 10 cents. Your penalty will be $9.80 per month.

The late enrollment penalty is mandated by federal law. It is unfortunate you have to pay this extra amount each month. You may want to talk with your local State Insurance Assistance Program about possible subsidy options to help off-set the cost of your Medicare Part D. You may contact SHIP at 410-222-4257.

My income is modest, $2,000 a month and I have modest savings of about $50.000. I applied for the Federal Extra Help Program and was denied. Is there any help with the cost of my Medicare Part D plan?

The Federal Extra Help Program considers both income and assets.

Income for a single person must be below $1,538 per month (below $2,078 for a married couple). Assets must be below $14,100 for a single person (below $28,150 for a married couple). However, there is a state of Maryland program that has a higher income level and does not count assets.

This program is called the Senior Prescription Drug Assistance Program. SPDAP allows income, for a single person, up to $3,035 per month (up to $4,115 per month for a married couple).

If approved for this program, the state will pay up to $40 a month toward your monthly Part D premium. In past years, this program has offered a reimbursement, up to $1,000, for people who enter the Medicare Part D coverage gap.

Applications for this program are available online at www.marylandspdap.com or by calling 1-800-551-5995.

Amy Rubino is the director of the Senior Health Insurance Assistance Program and the Senior Medicare Patrol for the Anne Arundel County Department of Aging and Disabilities. You may contact either program at 410-222-4257 or [email protected].

Credit: Amy Rubino - Amy Rubino is the director of the Senior Health Insurance Assistance Program and the Senior Medicare Patrol for the Anne Arundel County Department of Aging and Disabilities. You may contact either program at 410-222-4257 or [email protected].