Medicare 2026

How Columbia retirees can sidestep Medicare late fees

COLUMBIA, S.C. — For people turning 65 in the Midlands, one of the costliest Medicare mistakes is also one of the easiest to make: signing up late for Part B or Part D. The penalties are not one-time fees. They stick to your monthly premium for as long as you have the coverage, which for most people means the rest of their lives.

Here is how the late-enrollment penalties work, who they hit, and the simple steps Columbia-area readers can take to steer clear.

Why the penalties exist

Medicare is built on the idea that healthy and less-healthy people all pay in together. If people waited until they got sick to enroll, premiums would climb for everyone. The late-enrollment penalties are Medicare's way of nudging people to sign up on time — or to keep other coverage that's at least as good until they do.

That means the penalty isn't really a fine. It's a permanent bump added to your monthly premium, and it grows the longer you wait.

How the Part B penalty works

Part B covers doctor visits, outpatient care, and many preventive services. Your first chance to sign up is your Initial Enrollment Period — the 7-month window that starts three months before the month you turn 65 and ends three months after.

If you don't sign up then, and you don't qualify for a Special Enrollment Period (usually because you had job-based coverage from active employment), the penalty is 10% added to your Part B premium for every full 12-month period you could have had it but didn't.

Example: If you waited three full years, you'd pay 30% more each month — and you'd keep paying that higher amount for as long as you have Part B.

Miss your Initial Enrollment Period without other qualifying coverage? You'll generally need to wait for the General Enrollment Period, January 1 through March 31, with coverage starting the month after you enroll.

How the Part D penalty works

Part D is prescription drug coverage. The penalty here works differently. It's 1% of the "national base beneficiary premium" for each full month you went without Part D or other creditable drug coverage after you were first eligible.

Medicare rounds that figure and adds it to your monthly Part D premium. Like the Part B penalty, it typically stays with you as long as you have Part D coverage.

"Creditable coverage" is drug coverage that Medicare considers at least as good as a standard Part D plan — often from an employer, union, or the VA. Your plan should send you a notice each year telling you whether your coverage is creditable. Keep those notices. They are your proof.

For 2026, Part D also has a $2,100 annual out-of-pocket cap on covered drugs and a maximum deductible of $615, and the old coverage gap ("donut hole") is gone. None of that changes the penalty rules — but it does mean staying enrolled matters more than ever.

What this looks like in Columbia

Columbia sits in Richland County, where Medicare beneficiaries have a range of stand-alone Part D plans and Medicare Advantage plans with drug coverage to choose from during the Annual Enrollment Period. The exact number of plans available shifts each year, and you can see current options for your ZIP code on the Plan Finder at medicare.gov.

The important point for local readers: the penalty rules are federal, so they apply the same way in Columbia as anywhere else. What varies is which plans you can pick from to satisfy the coverage requirement.

How to avoid the penalties

A few habits protect most people:

• Mark your Initial Enrollment Period. It starts three months before your 65th birthday month. Even if you plan to delay because of employer coverage, know the date.
• Confirm your other coverage is "creditable." If you're still working past 65, ask your HR department in writing whether your health plan and drug coverage count. Keep the letter.
• Use your Special Enrollment Period on time. When you leave a job or lose employer coverage, you generally have 8 months to sign up for Part B and 63 days for Part D without a penalty.
• Don't skip Part D just because you don't take medications. Even a low-cost drug plan can shield you from a penalty later, and drug needs can change quickly.

Where to get local help

If any of this feels tangled, you don't have to sort it out alone. South Carolina's State Health Insurance Assistance Program (SHIP), called I-CARE here, offers free, unbiased Medicare counseling to Columbia residents. You can also call 1-800-MEDICARE (1-800-633-4227), 24 hours a day, or visit medicare.gov to check enrollment dates, see plans in your ZIP code, and review your account.

Getting the timing right once, at the start, spares you a monthly reminder of a missed deadline for the rest of your Medicare years.