What is the standard penalty for late enrollment in Medicare if a customer misses the enrollment window?

The standard penalty for late enrollment in Medicare is indeed a 1% increase in the base premium for each month that an individual goes without coverage beyond their initial enrollment period. This penalty is designed to encourage timely enrollment and ensure that individuals do not delay obtaining Medicare coverage. When a person enrolls after the initial eligibility window—typically when they turn 65 or when they first qualify due to disability—they can face a premium increase based on the duration of their delay in enrollment.

This penalty can persist for as long as the individual is enrolled in Medicare, which underscores the importance of enrolling during the designated periods. Failure to enroll on time can lead to considerable extra costs down the line due to this monthly premium increase, affecting a person's overall healthcare budgeting. Therefore, the assessment of a 1% penalty per month serves as a significant motivator for individuals to maintain continuous health coverage and avoid lapse periods.