How to Get Out of Medicare Part B and Part D Penalties

Many people are shocked to find out they’ve been hit with a Medicare penalty — either for Part B (medical insurance) or Part D (prescription drug coverage). The worst part? These penalties often last a lifetime. But here’s the good news:

Some people can get their penalties waived.

Appealing a Medicare penalty is possible — if you qualify. Let’s walk through what the penalties are, and how you may be able to get out of them legally and permanently.

What Are the Part B and Part D Penalties?

Part B Penalty

You pay 10% extra for every 12 months you delayed enrolling in Part B — unless you had creditable coverage.
This penalty is added to your monthly premium for life.

Part D Penalty

You pay 1% of the national base premium × the number of months you were late.
This penalty also lasts for life unless successfully appealed.

3 Legit Ways to Get Out of a Medicare Penalty

1. You Had Creditable Coverage

The most common way to avoid or reverse a penalty:

You had employer coverage, VA benefits, retiree plan, or other insurance that met Medicare’s definition of creditable coverage.
You must submit proof — like a Notice of Creditable Coverage or a letter from your employer or plan.

Pro Tip: If your previous insurance didn’t notify Medicare, you can request a penalty reconsideration.

2. You Were Given Bad Information (Equitable Relief)

Medicare may grant “equitable relief” if:

A federal employee or Medicare rep gave you incorrect or misleading information that caused the delay
You can provide documentation of the misinformation (names, dates, call logs, letters, etc.)

Example: A Social Security agent told you you didn’t need to sign up yet, and you followed that advice.

3. You Were Covered by Medi-Cal or Another Program

If you were on full-scope Medi-Cal or Extra Help and weren’t properly auto-enrolled, your penalty may be reversed. Many clients had low income, didn’t enroll in time, and then learned they qualified for help all along.