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The penalty percentage stays the same from year to year, not the dollar amount - unless the average PDP price remains constant.
Rick
Part D Penalty Question
- Thread starter Winter_123
- Start date
The penalty percentage stays the same from year to year, not the dollar amount - unless the average PDP price remains constant.
Rick
- 19,657
It doesn't change once applied for the individual that gets the penalty. I thought that was what was being asked.
The penalty amount for people new to getting a penalty can, and does, change year to year. But, they don't raise the penalty on existing payors.
Right. In my example above... the $13.44/mo penalty for that person will be $13.44 as long as they have a PDP.
We've had this discussion before and the actual verbage was copy/pasted.
I think the penalty doesn't start for someone who NEVER had a PDP until August '06. The deadline for signing up was 5/15/06, and they were allowed 3 months grace as I understand it. I was told that means the LEP is calculated as 4 months for 2006.
Nevertheless, I always tell my client my estimate is just that, an estimate. Medicare will determine the amount and tell the carrier how much to collect, and it may be later in the year before the letter comes, but once determined, will be with them for life. If they put it off now, it will still get them later when they do sign up, and we will all need Rx sooner or later, and the later will get more expensive as time goes by, so even if it means an LEP now, it is better than an LEP later.
You can Google: Medicare and you 2010
http://www.medicare.gov/Publications/Pubs/pdf/10050.pdf
"1% penalty calculation" which is $.32 in 2010, you can estimate the amount that will be added each month to your Medicare drug plan's premium for the current year. This penalty amount may increase every year."
1% per month of the current years national average Part D premium, however, 2 months do not count. The penalty is only applied after 63 days without credible prescription drug coverage. See page 67.
I stand corrected. Thanks for the info.
celestrill
New Member
- 14
First Year They've Caught UP
I have never seen a member get the Part D penalty for joining late until this year. Before this year, I was able to enroll people in stand-alone Part Ds or MAPDs without them incurring any penalty at all.
This year, the companies that are checking enrollments for creditable coverage for Rx plans are finally catching up to those who never opted in to Part D. They are going to be billed X amount per month for it; but it's only .30 per month x 45 or something. It's not that big a deal, although it's a tyranny.
I have never seen a member get the Part D penalty for joining late until this year. Before this year, I was able to enroll people in stand-alone Part Ds or MAPDs without them incurring any penalty at all.
This year, the companies that are checking enrollments for creditable coverage for Rx plans are finally catching up to those who never opted in to Part D. They are going to be billed X amount per month for it; but it's only .30 per month x 45 or something. It's not that big a deal, although it's a tyranny.
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