When you purchase Original Medicare Coverage, it ONLY covers your medical needs (doctor visits, labs, hospital, etc.), where the insured pays 20% of whatever the bill is for that service. The government pays the remaining 80%. It does not include prescription coverage (known as Part D), dental, or vision.
You will have to pay a penalty if you do not purchase Part D prescription coverage when you sign up for Medicare Coverage. While with dental and vision, you won’t. RX coverage is from a private company of your choosing, and even if you are not taking a prescription, you can be penalized for not having it, and it is limited when you need to purchase it. This means if you are not covered and, let’s say, in April, a doctor prescribes something to you, you are responsible for 100% of the cost. You can apply for part D, but in most cases, you will not be able to activate it until January 1st.
Depending on the time frame that you didn’t have Part D Medicare coverage will dictate the penalty amount. Medicare calculates the penalty by multiplying 1% of the “national premium costs of a drug plan” ($32.74 in 2023) times the number of full, uncovered months you didn’t have Part D or creditable coverage (from group coverage). The monthly premium is rounded to the nearest $.10 and added to your monthly Part D premium.
The national base beneficiary premium might change every year, so your penalty amount might also change yearly, so your penalty amount may also change yearly. This is a lifetime penalty removed from your social security amount prior to sending it to the recipient.
To learn more about Part D Medicare coverage, contact Gemini Insurance Company in Pinellas County, FL. Gemini Insurance Company has the knowledge you need to make an empowered decision so contact them today.
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