penalty for late enrollment in part D

[aufan]

I know I should probably know this, but since i'm just now starting to get into the part D plans for seniors, how do you handle the late enrollment penalty?

For example:

Mr. Jones calls and says he needs a drug plan. Mr. Jones is 67 but failed to enroll in part D when he was eligible.

How do you accurately quote what it's going to cost the client? I also know that he would have to wait till Nov. 15, but are you supposed to figure in the penalty for late enrollment?

 

[Bob_The_Insurance_Guy]

The penalty will be figured out for him. Whatever plan he joins, they will charge him 1% for every month, past last May, and add it to the monthly premium.

 

[GreenSky]

By the way, the 1% penalty is not based upon the premium of the plan the client chooses. It's based upon the average cost for plans. It may be more or less than the actual plan chosen.

To keep it simple, I just tell my clients it's somewhere between $3-4 per month per year.

 

[ktherrien]

Medicare calculates the penalty by multiplying 1% of the "national base beneficiary premium" ($35.63 in 2017) times the number of full, uncovered months you didn't have Part D or creditable coverage. The monthly premium is rounded to the nearest $.10 and added to your monthly Part D premium.

If you get "extra help" or LIS you do not pay the late enrollment penalty.

Example: .24 (24% penalty for 24 months no coverage) * 35.63 = $8.60 is the late enrollment penalty added to any PDP premium.

 

[BuckNasty]

Medicare calculates the penalty by multiplying 1% of the "national base beneficiary premium" ($35.63 in 2017) times the number of full, uncovered months you didn't have Part D or creditable coverage. The monthly premium is rounded to the nearest $.10 and added to your monthly Part D premium.

If you get "extra help" or LIS you do not pay the late enrollment penalty.

Example: .24 (24% penalty for 24 months no coverage) * 35.63 = $8.60 is the late enrollment penalty added to any PDP premium.

Oldest "thread revival" record broken here?