How to avoid the Medicare Part B penalty: You’ve got 2 options

Wondering how to avoid the Medicare Part B penalty?

There are two options to avoid a penalty. But it’s important to understand both before your initial enrollment period begins.

Here’s what you need to know… 

What is Medicare Part B?

 Medicare Part B is a part of Medicare that helps cover medical services and supplies. It includes:¹

•       Doctor visits and outpatient care
•       Preventive services like vaccines and screenings
•       Medical equipment like wheelchairs and walkers

To get Part B:

•   Most people pay a monthly premium of $185 or higher, depending on your income.²
•   There’s also a yearly deductible of $257 and usually 20% coinsurance for services.²
•   But if you don’t enroll at the right time, you could pay more because of the Medicare Part B penalty

When to enroll in Medicare Part B

•   People usually become eligible at age 65.
•   Younger people with certain disabilities can also qualify.
•   You may be able to delay enrolling in Medicare Part B if you have health insurance through your or your spouse’s employer

Most people sign up for Medicare during their initial enrollment period. 

• It starts three months before you turn 65.
• It ends three months after the month you turn 65.

If you don’t sign up for Part B during your Initial Enrollment Period and don’t have other coverage, you generally have to wait until the Medicare Open Enrollment Period to sign up from January 1 to March 31.³

• If this happens, you could go months without coverage.
• And when you do enroll, you may have to pay the Medicare Part B penalty, which goes up the longer you wait to sign up.

 How much is the Medicare Part B penalty? 

It’s 10% of the standard Medicare Part B Premium ($185 in 2025) for each 12-month period you could have signed up for Part B, but didn’t.⁴

It’s not a one-time fee. If you sign up late, you’ll pay the Medicare Part B penalty for as long as you have Part B coverage.

Here are a couple examples to understand how the Medicare Part B penalty is calculated: 

Example 1 

If you went 5 months without Medicare Part B coverage when you could have enrolled, you wouldn’t be penalized because it’s less than a full 12-month period.

Example 2 

If you waited 15 months to get coverage, you’d have to pay a 10% late enrolment penalty for the full 12-month period you went without Part B coverage.

$185 (2025 Part B standard premium)
+ $18.50 (10% of [$185] late enrollment penalty)

= $203.50 would be the Part B monthly premium for 2025. This amount is rounded to the nearest $.10 and includes the late enrollment penalty.

2 ways to avoid the Medicare Part B penalty 

If you want to avoid the Medicare Part B penalty, it’s important to understand when you should enroll. There are three ways to avoid the penalty:

1. Sign up for Medicare Part B during your Initial Enrollment Period: 

• It starts three months before you turn 65.
• It ends three months after the month you turn 65.

2. Sign up for Medicare Part B during your Special Enrollment Period, if you qualify: 

If you have health insurance through your or your spouse’s current employer when you become eligible for Medicare, you can delay Part B without a penalty.

You can enroll in Part B:

• Anytime you’re still covered by the employer’s plan.
  During an 8-month Special Enrollment Period that begins the month after your employment or your employer-provided insurance ends, whichever comes first.

Tip: Make sure the health insurance you have is considered “creditable” by Medicare. Creditable coverage means it is expected to pay, on average, at least as much as Medicare’s standard drug coverage.⁵

Want some help enrolling in Medicare?

We can help you review different Medicare plans, compare options, and help you understand when you need to enroll to avoid penalties. Give us a call between 8 a.m. and 5 p.m. ET at (800) 827-9990 to talk with a licensed health insurance agent or find one in your area.