How the Part D Penalty Works
If you go 63 or more consecutive days without Part D or other creditable drug coverage after your Initial Enrollment Period ends, the penalty clock starts. The formula: 1% of the national base beneficiary premium per full uncovered month. The percentage attaches to you permanently; the dollar figure resets each January as the base premium changes.
What Counts as Creditable Coverage
Drug coverage that's expected to pay, on average, at least as much as Medicare's standard drug coverage. Employer and union plans often qualify (the plan must tell you each year whether it's creditable), and coverage such as VA benefits and TRICARE generally counts. If you're relying on any of these to delay Part D, keep the annual creditable-coverage notices — they're your proof.
The "I Don't Take Any Medications" Trap
The penalty doesn't care whether you used drug coverage — only whether you had it. That's why many people who take nothing enroll in the lowest-premium Part D plan in their area: a few dollars a month now versus a permanent surcharge later.