Why Do I Need Part D if I Don't Take Any Medication?

It is generally a good idea to have Medicare Part D coverage, even if you don't currently take any medications. Here's why.

Late Enrollment Penalty

Many people are unaware of the Part D "Late Enrollment Penalty" that Medicare beneficiaries may face if they go without creditable Part D prescription drug coverage. This penalty applies for every month without such coverage and is calculated based on the national base beneficiary premium for Part D, as determined by Medicare - not the insurance company.

The penalty equals 1% of the national base beneficiary premium for each full, uncovered month without Part D or creditable coverage. For example, in 2019, the national base beneficiary premium was $33.19. The penalty amount is rounded to the nearest $0.10 and added to the monthly Part D premium.

Let's break this down with an example:
If someone has gone 20 months without creditable drug coverage, the penalty is calculated as 1% of $33.19, which is $0.33. Multiply that by 20 months, and the penalty comes to $6.60. This $6.60 will be added to their monthly Part D premium for as long as they have a Part D plan. If they enroll in a Part D plan with a base premium of $20 per month, their total monthly cost becomes $26.60, including the penalty. This is a preventable and lifelong penalty that can add up quickly!
 
Things to Consider

Even if you don't take any medications now, your situation could change. Having Part D ensures you are covered if you need prescriptions in the future, potentially saving you from high out-of-pocket costs. There are often low-cost Medicare Part D plans available that can provide peace of mind without straining your budget.

If you have other drug coverage (e.g., through an employer or union), you may not need Part D. However that coverage must be "creditable," meaning it's at least as good as Medicare's standard prescription drug coverage. Generally, if you go without creditable prescription coverage for 63 consecutive days or more after your initial Medicare enrollment period ends, you will be subject to the Part D penalty.

If you're not sure whether you need a Part D plan, reviewing your specific situation with a Medicare expert or your plan's advisor can help ensure you make the right choice.
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To Get Help Now, Call Our Office

​Rob Davies
Prairie Grove Insurance
800-254-5200
​608-839-0275