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Enrollment & timing

MedPAC Reviews Medicare's Lifelong Late-Enrollment Penalties as Open Enrollment Nears

Congress's independent Medicare advisory commission held a working session this week on the permanent premium surcharges that can follow beneficiaries for life when they miss their initial Part B or Part D enrollment windows.

By the Goodsurance editorial teamOctober 9, 2026

The Medicare Payment Advisory Commission (MedPAC) devoted a session of its two-day October 8 and 9 meeting in Washington to Medicare's late-enrollment penalties for Part B and Part D. The October 9 session, listed on the commission's public agenda, examined concerns that beneficiaries may inadvertently trigger permanent premium surcharges because of the complexity of Medicare's enrollment rules, just days before the October 15 start of the Annual Enrollment Period.

Under current rules, a beneficiary who delays Part B enrollment beyond their initial window faces a 10 percent premium surcharge for each full 12-month period they went without coverage. That penalty lasts as long as the person holds Part B. In 2026, the standard Part B monthly premium is 202 dollars and 90 cents; a two-year delay adds a permanent 20 percent surcharge on top of that amount.

Medicare late-enrollment penalties are permanent. MedPAC met this week to examine how often beneficiaries are caught off guard.

Part D carries a separate penalty: 1 percent of the national base beneficiary premium for each month the person lacked creditable drug coverage. In 2026, the base beneficiary premium is 38 dollars and 99 cents, so a 12-month gap adds roughly 12 percent to that figure each month, and the surcharge also never expires.

The session is part of ongoing MedPAC work on the complexity of enrollment decisions facing Medicare beneficiaries, a theme the commission has carried across several recent report cycles. Commissioners reviewed staff analysis and discussed potential next steps during the October meeting. No formal recommendations were adopted.

Open enrollment for 2027 Medicare coverage begins October 15 and runs through December 7.

In plain words

Medicare charges extra fees if you sign up late. These fees never go away. They get added to your monthly bill for as long as you have Medicare.

If you wait too long to sign up for Part B, you pay 10 percent more for every year you were late. The normal Part B bill in 2026 is 202 dollars and 90 cents each month.

If you wait too long to get a Part D drug plan, you pay 1 percent more for every month you waited. The extra fee is based on a set amount, which was 38 dollars and 99 cents in 2026.

A group called MedPAC advises Congress on Medicare. They met on October 8 and 9, 2026 to study these penalties. They looked at how confusing the sign-up rules can be and how some people get penalized by mistake.

The open enrollment period for 2027 Medicare plans starts October 15. It ends December 7.

Understand the basics first

Source: MedPAC
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