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Will I Have a Penalty if I Join Part D Late? *ONLINE ONLY*

July 2025

By Medicare Rights Center

I’m turning 65 soon but might wait to enroll in Part D. I already have drug coverage from my job, so I’m not sure I need it. Will I have a penalty if I join Part D later?

- Marcia (Allentown, PA)

Dear Marcia,

Whether you’ll have to pay Part D late enrollment penalty (LEP) if you later decide to enroll depends on whether your current coverage is creditable for Part D.

Creditable drug coverage means your plan provides a benefit that is as valuable or more valuable than the basic Part D benefit. Each year around September, you should get a notice from your employer or plan informing you about whether or not your drug coverage is creditable. If you don’t get this notice, contact your human resources department, drug plan, or benefits manager.

If you have creditable drug coverage, you won't owe a LEP if you later enroll in Part D. Also, if you have creditable coverage and you lose that coverage, you’ll have a two-month Special Enrollment Period (SEP) to enroll in a Part D plan.

If your drug coverage isn't creditable, you should enroll in Part D. Even if you don’t take prescription drugs now, it’s important to have Part D or creditable coverage so that if you later need prescriptions, you don’t have penalties or coverage gaps.

If you might delay Part D enrollment because you already have prescription drug coverage, make sure to check if your coverage is creditable. Keep a record of your insurance and of the creditable coverage notices until you enroll in Medicare Part D.

Hope this answers your question!

-Marci

The Medicare Rights Center is a national, nonprofit consumer service organization that works to ensure access to affordable health care for older adults and people with disabilities through counseling and advocacy, educational programs and public policy initiatives.