This is a question we get quite frequently:
“If I don’t take any prescriptions, why do I need to sign up for Part D?”
In a perfect world, there would be no need for Rx coverage if you didn’t need an Rx!
In the world of Medicare though, delaying Part D can cost you.
Remember how you can be penalized for delaying Part B? You can be penalized for delaying Part D too!
Medicare has a sneaky little equation they like to use when deciding how much to penalize you:
1% for every month you delay Part D x the national average of a Part D plan = your penalty.
Let’s do the math.
Let’s say you delay enrolling in Part D for 3 years:
3 years = 36 months
36% x $59.00 (the national average in 2024) = $21.24 / month penalty
The sad news? This penalty never goes away!
You would be stuck paying an extra $21.24 every month for the rest of your life.
The good news? Even if you currently don’t take any prescriptions, you can avoid this penalty by enrolling in the cheapest Part D plan available. Some only cost $10 a month.
By having some form of drug coverage in place, you are also protecting yourself. Let’s say you get prescribed something temporarily, or worst-case scenario, a costly cancer-related drug. Without coverage, you would be on the hook for the full cost of these prescriptions. That’s a lot of financial exposure!
As my dad has said, “I cannot stress enough that the downside of waiting to enroll [in a Part D plan] is far too costly. Buying even the lowest priced plan now, when you sign up for Medicare, preserves your participation in Part D benefits without penalties later.” (from The Nuts and Bolts of Medicare)
Do yourself (and your pocketbook!) a favor: enroll in a Part D plan when you enroll in Medicare A and B!