Need part B penalty clarification

[James Kalafatis]

I discontinued Part B in December 2016 and did not have it in 2017, 2018, and 2019.

I understand there is a 10% monthly penalty for each year you did not have it.

If I re enroll during the current Medicare open season what would the penalty premium be.

Would the penalty be an additional 30% of the new part B premium for 2020??
Or would it be 30% of the last monthly premium I paid in 2016?

 

[Jilljones]

I discontinued Part B in December 2016 and did not have it in 2017, 2018, and 2019.

I understand there is a 10% monthly penalty for each year you did not have it.

If I re enroll during the current Medicare open season what would the penalty premium be.

Would the penalty be an additional 30% of the new part B premium for 2020??
Or would it be 30% of the last monthly premium I paid in 2016?

You could try going to yourmedicarequote.com and lookinng up plans. Call and ask them. They helped me.

 

[MBSC]

Would the penalty be an additional 30% of the new part B premium for 2020??
Or would it be 30% of the last monthly premium I paid in 2016?

It would be 30% of the new standard part B premium for 2020 and be adjusted each year thereafter as the standard Part B premium is adjusted.

CMS has projected the 2020 standard Part B premium to be $144.30 but that rate has not been finalized yet. If that does become the actual premium, your monthly penalty would be ($144.30*0.30) or $43.29. In 2021, if the standard Part B premium becomes $148.00, then your penalty would be ($148.00*0.30) or $44.40. The percentage is fixed but the premium it is calculated on changes each year.

In the future, if there is a year with no SS COLA and the standard Part B premium increases but your Part B premium does not increase due to the "held harmless" clause, the penalty could still increase because it is calculated against the standard Part B premium not your individual premium.