Late Enrollment Penalties 

If you don’t enroll when you’re first eligible for Medicare Part A, B, and D, you can be subject to Late Enrollment Penalties (LEP):

• Part A (hospital coverage) Late Enrollment Penalty: Most people qualify for free Medicare Part A. They won’t have to worry about a late enrollment penalty because they have the 10 years of work history needed. But, if you don’t qualify for free Part A and you don’t buy Part A as soon as you are eligible for Medicare, you will have to pay a late enrollment penalty. That means your Part A premium will be 10% higher for twice the number of years you delayed your Part A enrollment.
  
  • Example: If you delayed Part A enrollment for two years, you’ll pay 10% more for your premium for four years (2 years x 2).

• Part B Late Enrollment Penalty: The penalty for Part B may last for as long as you have Medicare Part B; the penalty amount could go up 10% for every 12-month period you were eligible for Part B but didn’t enroll.

• Part D Late Enrollment Penalty: Calculated by multiplying 1% of the “national base beneficiary premium” by the number of months that you were eligible for Part D but didn’t enroll. If you've been covered by an HCSC plan, you have creditable coverage and likely won't be subject to a LEP. 
  

*Your HCSC health coverage is creditable drug coverage, so do NOT elect an individual Medicare Part D drug plan while enrolled in the HCSC plan. If you enroll in the BlueSecure plan, you MUST enroll in the Retiree Group Part D plan offered.