Part D Penalty Question

[jmarkk1]

Is there a way to find out beneficiary part d penalty before they enroll in MAPD plan?

 

[WCMason]

Is there a way to find out beneficiary part d penalty before they enroll in MAPD plan?

(800) MEDICARE. That'll get you the magic number

 

[G.Gordon]

A. The maximum penalty is easily calculated by taking the months they have been without coverage and taking that percentage of the standard part D premium.

B. The possible penalty, the guess, should be what they "think" they have been without coverage.

If someone today has been on Medicare since before Jan. 1 2006 and never had drug coverage, they are subject to about 100% or $32/mo.

 

[goillini52]

A. The maximum penalty is easily calculated by taking the months they have been without coverage and taking that percentage of the standard part D premium.

B. The possible penalty, the guess, should be what they "think" they have been without coverage.

If someone today has been on Medicare since before Jan. 1 2006 and never had drug coverage, they are subject to about 100% or $32/mo.

I stopped doing MA/Part D a few years ago. I know that the penalty is 1% for each month they could've had Part D, but didn't...where did you get the figure $32 a month? I never saw a premium mentioned.

 

[WCMason]

I stopped doing MA/Part D a few years ago. I know that the penalty is 1% for each month they could've had Part D, but didn't...where did you get the figure $32 a month? I never saw a premium mentioned.

The penalty is 1% of the national average cost of an Rx plan (currently $31.17) times the number of months without creditable coverage. It's about $30 (1% of avg cost times # of months without an Rx plan) for those who never got an Rx plan since 1/1/06.

 

[goillini52]

The penalty is 1% of the national average cost of an Rx plan (currently $31.17) times the number of months without creditable coverage. It's about $30 (1% of avg cost times # of months without an Rx plan) for those who never got an Rx plan since 1/1/06.

Ok, thanks for the explanation.

 

[GLT]

I take calls for a particular company during the Medicare AEP. A caller says that he was told the maximum penalty is $24.00 regardless of how long you haven't had credible coverage.

Can anyone verify if this is true? I cannot find it anywhere.

 

[WCMason]

I take calls for a particular company during the Medicare AEP. A caller says that he was told the maximum penalty is $24.00 regardless of how long you haven't had credible coverage. Can anyone verify if this is true? I cannot find it anywhere.

If there is a maximum Medicare doesn't mention it. The average monthly premium the penalty is based on is up to $32.42 in 2014

http://www.medicare.gov/part-d/costs/penalty/part-d-late-enrollment-penalty.html

 

[AllGold]

And like everything else with Medicare, the "national average" rate changes from year to year. The current rate is used so even without changes to the number of months without coverage, the penalty can increase or decrease from year to year.

 

[moonlightandmargaritas]

A caller says that he was told the maximum penalty is $24.00 regardless of how long you haven't had credible coverage.

Good gawd!!! It is CREDITABLE coverage.