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Belief 5
“If I sign up for Part B late, I pay a penalty for the first year and then it goes away.”
How long does the penalty really last?
Correct!
Not quite.
The Part B late enrollment penalty adds 10 percent to the premium for each full 12-month period a person could have had Part B and did not, without qualifying coverage from a current job. It is added every month for as long as the person has Part B, which for most people means for life. Coverage from a current employer with 20 or more employees generally protects against it. COBRA and retiree plans do not.