Late Enrollment Penalty (LEP) for Premium Part A

If an individual did not enroll in premium Part A when first eligible, they may have to pay a higher monthly premium if they decide to enroll later. The monthly premium for Part A may increase up to 10%. The individual will have to pay the higher premium for twice the number of years the individual could have had Part A but did not sign up.

For individuals enrolling using the SEP for the Working Aged and Working Disabled, the premium Part A LEP is calculated by adding the months that have elapsed between the close of the individual’s IEP and the end of the month in which the individual enrolls. For enrollments after your IEP has ended, months where you had group health plan coverage are excluded from the LEP calculation.

For individuals enrolling using an Exceptional Conditions SEP or the International Volunteers SEP, no LEP will be applied.