Medicare 2026

How Part B and Part D late penalties work in Bloomington

BLOOMINGTON, Minn. — Some Medicare mistakes are easy to fix. Missing your sign-up window for Part B or Part D is not one of them. The late-enrollment penalties for these two parts of Medicare can follow you every month for as long as you have coverage — in some cases, for the rest of your life. The good news: once you understand the deadlines, they are not hard to meet.

Why these penalties matter

Medicare has strict enrollment windows. If you miss yours and don't qualify for an exception, the government adds a permanent surcharge to your monthly premium. It's not a one-time fee. It's baked into your bill month after month, year after year.

That's why Medicare experts in Bloomington — and across Hennepin County — spend so much time helping people mark the right dates on the calendar. A little planning now can spare you a bill that never goes away.

The Part B late-enrollment penalty

Part B covers doctor visits, outpatient care and many preventive services. Most people first become eligible during their Initial Enrollment Period — a 7-month window that starts 3 months before the month you turn 65 and ends 3 months after.

If you don't sign up during that window and don't have other qualifying coverage, your monthly Part B premium can go up by 10% for each full 12-month period you could have had Part B but didn't. That extra amount stays with you for as long as you have Part B.

There is an important exception. If you're still working past 65 and covered by an employer group health plan (yours or a spouse's), you usually qualify for a Special Enrollment Period when that coverage ends. That lets you sign up for Part B without a penalty. COBRA and retiree coverage do not count as active employer coverage for this rule, which trips up a lot of people.

The Part D late-enrollment penalty

Part D covers prescription drugs. The rule here is different but just as important: you need to have creditable drug coverage — meaning coverage at least as good as standard Part D — from the time you're first eligible.

If you go 63 days or more in a row without creditable drug coverage after your Initial Enrollment Period ends, you may owe a Part D late-enrollment penalty when you finally sign up. The penalty is calculated as 1% of the "national base beneficiary premium" for every month you went without coverage, and it's added to your Part D premium for as long as you have Part D.

If you have drug coverage through an employer, union, the VA or another source, ask the plan each year whether it is "creditable." Insurers are required to tell you in writing. Keep those notices — you may need them later to prove you weren't uncovered.

Enrollment periods to circle

A few dates do most of the heavy lifting:

• Initial Enrollment Period: The 7 months around your 65th birthday.
• General Enrollment Period (Jan. 1 – Mar. 31): For people who missed their initial window and don't qualify for a Special Enrollment Period.
• Annual Enrollment Period (Oct. 15 – Dec. 7): When anyone with Medicare can change Part D or Medicare Advantage coverage for the following year.
• Medicare Advantage Open Enrollment (Jan. 1 – Mar. 31): A second chance for people already in a Medicare Advantage plan to switch once.

What's new for 2027

A few program-level changes are worth knowing as you plan:

• The Part D out-of-pocket cap is $2,100 in 2026 and $2,400 in 2027.
• The Part D deductible maxes out at $615 for 2026 and $700 for 2027 (individual plans may set it lower).
• The old coverage gap, or "donut hole," is gone as of 2025 — Part D now has three phases instead of four.
• The Medicare Prescription Payment Plan lets you spread your drug costs across the year in monthly installments instead of paying at the pharmacy counter.
• IRMAA — the income-related surcharge on Part B and Part D — kicks in above $109,000 in income for a single filer in 2026.

None of these changes affect the penalty rules, but they do make it more important than ever to sign up on time so you can actually use the coverage.

How to protect yourself

A few practical steps go a long way:

1. Know your Initial Enrollment Period. Set a reminder 3 months before you turn 65. 2. Check your current coverage. If you're still working, ask HR whether your health plan and drug plan are considered creditable. 3. Save your creditable-coverage letters. These prove you weren't uncovered if a penalty is ever assessed. 4. Ask for help. Bloomington residents can reach the Minnesota Senior LinkAge Line (the state's SHIP program) at 1-800-333-2433 for free, unbiased Medicare counseling.

Bloomington is in Hennepin County, where a wide range of stand-alone Part D and Medicare Advantage plans with drug coverage are offered each year. But the number of options doesn't matter if you miss the window to enroll — so the deadline comes first, the plan comparison second.