Lesson 6 of 15
Avoiding late enrollment penalties
Quick answer
If you don't enroll in Part B when first eligible, you pay a 10% penalty added to your Part B premium for each full 12-month period you could have had Part B but didn't — for life. TRICARE coverage does not exempt you from the penalty.
Key takeaways
- Part B late penalty = 10% of premium for every full year you delayed, added permanently.
- Part D late penalty exists too, but TFL beneficiaries are protected because TRICARE Pharmacy is creditable coverage.
- Enroll during your Initial Enrollment Period to avoid both penalties.
- There is no Medicare late penalty for retired military based on TRICARE — TRICARE does not count as employer coverage.
Detailed explanation
The Part B penalty in plain numbers
If you wait 3 full years past your IEP to enroll, you pay 30% extra on your Part B premium — for the rest of your life. On a $185/month premium that's about $55/month extra, forever.
Why TRICARE doesn't help here
SSA only waives the penalty if you delayed Part B because of active employer-sponsored coverage for you or your spouse. TRICARE retiree coverage does not qualify.
Part D — you're already protected
TRICARE Pharmacy is "creditable" prescription drug coverage. As long as you keep TFL/TRICARE Pharmacy, you do not need Part D and you do not incur a Part D late penalty.
Frequently asked questions
I missed my IEP — what now?
Enroll during the General Enrollment Period (Jan 1 – Mar 31). Coverage starts the month after enrollment. The penalty applies but coverage starts.
Can the penalty ever be removed?
Generally no, outside of narrow equitable-relief exceptions. Treat the IEP deadline as firm.
Official government resources
Official Medicare and TRICARE publications are the definitive source. This page is an independent educational summary; always confirm specifics against the resources above.