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What is a Medicare Part B late-enrollment penalty?

Medicare Part B late-enrollment penalty: when the 10%-per-12-month add-on applies, how it differs from Part D LEP and IRMAA, and a worked delay example.

Reviewed September 2026.

The Medicare Part B late-enrollment penalty (LEP) is an extra percentage added to your monthly Part B premium if you delay Part B beyond your initial enrollment period without qualifying coverage that lets you wait. In plain CMS orientation terms, the add-on is often 10% of the standard Part B premium for each full 12-month period you were eligible but not enrolled, and it usually continues for as long as you keep Part B. This page is Part B-specific. The combined Part B/D overview lives at Medicare late-enrollment penalty basics.

Part B LEP vs nearby Medicare add-ons

ItemWhat it isHow it differs from Part B LEP
Part B LEPPercent bump on Part B for delayed enrollment without a valid delayBased on how long you waited
Part D LEPPercent bump on drug coverage after 63+ days without creditable drug coverageSeparate clock; can stack
IRMAAIncome-related monthly adjustment on Part B/DBased on MAGI lookback, not delay months: IRMAA
Part B deductibleAnnual amount before Part B coinsuranceCost-sharing, not a penalty: Part B deductible

Medigap premiums do not cancel a Part B LEP on the Medicare bill: What is Medigap. Drug-stage cost sharing is separate: Part D donut hole.

When people can delay Part B without LEP

Many people who are 65+ and covered under a current employer (or spouse’s employer) group plan with enough employees can delay Part B and use a special enrollment period when that coverage ends. Map that path before you skip Part B: Enroll in Medicare with employer coverage. Individual marketplace plans and COBRA are not the same as active large-employer coverage for Part B delay rules. Confirm your facts with Social Security and Medicare.gov.

Worked sketch: two full 12-month periods

Jordan becomes eligible for Part B at 65 in March 2024, drops employer coverage without enrolling in Part B, and finally enrolls during the General Enrollment Period that creates Part B start in 2027 after two full 12-month periods counted toward LEP. A common teaching illustration is a 20% Part B LEP (2 × 10%) on top of the standard Part B premium for as long as Jordan keeps Part B.

Line on Jordan’s budgetTreat as
Standard Part B premiumBase CMS amount for the year
Part B LEP (e.g., 20%)Permanent-looking percent of the standard premium
IRMAA (if any)Separate income surcharge
Medigap or Advantage plan premiumPrivate plan price beside Medicare

Exact month counts belong on Jordan’s Social Security / Medicare notice, not on a blog estimate.

Checklist

  1. Confirm whether you are in initial enrollment, a special enrollment after employer coverage, or general enrollment.
  2. Do not assume COBRA or a marketplace plan protects you from Part B LEP the way active employer coverage can.
  3. Budget Part B LEP as an ongoing percent, not a one-time fee.
  4. Keep Part D creditable-coverage letters separate so you do not mix B and D clocks.
  5. Use Medicare.gov and Social Security (or SHIP) for enrollment timing; ignore cold-call “penalty removal” pitches.

Educational only. Not Medicare advice. Penalty formulas and enrollment periods change; confirm with Medicare.gov, Social Security, and a qualified counselor.