How Prescription Drug Coverage can be avoided from penalty

Are you a patient with chronic condition requiring medication in lots? There are possibilities that you get your prescription drug planned. In case, you are fit and are in no need of any medication, what is the use of Medicare signing up is the question. However, with prescription drug coverage, there is a need for Medicare and signing up becomes inevitable as you become eligible for the first time. If you miss the eligibility time, down the road you may pay more as penalties.

Why does federal government sign up and pay a premium for something that you do not use right now? The insurance concept is a shared risk such as you cannot look for homeowners insurance, when your house is on fire.

Medicare supplement plans are a must and the Medicare prescription drug coverage is in Part D. There is confusion about the penalty in Part D for not signing in time. This confusion is centered on people having coverage from a former or current employment, group plan or some union health plan.

The bottom line is that having a drug coverage meeting the minimum standards of the 2019 Medicare supplement plans do not pay penalty for not signing during eligibility for Part D.

Creditable Coverage

Coverage must be creditable such that the coverage should pay same as any standard prescription drug coverage of Medicare in an average. In case there is drug coverage through some group plan, there is a need to tell if the coverage is creditable. Thus, Medicare supplement plans send information once a year. It may arrive as a newsletter, letter or a standalone notice. You can keep this information so that it is useful as you sign for a Medicare drug plan.


The Penalty

If you have no ‘creditable’ drug coverage for prescription, you may pay to get Part D. The time frame allowed to have creditable coverage prescription drug is for 63 days and after that you are liable to bear the penalty.


The penalty is calculated depending on a few factors. This depends on the base premium, time – the late period and a fixed percentage. The charge is calculated as one percent per month of late enrolment.

This is important to know because your healthcare requirements may change with age and your doctor is likely to prescribe additional or different medications. Thus, from October 15 to December 7, using the Open Enrollment period it is ideal to evaluate your plan and to make suitable changes with your change of needs.