Hello Toni,
I delayed enrolling in Medicare Part B because I was working with employer benefits. Recently I turned 70 and am retiring effective Jan. 1. I have enrolled in a Medicare supplement Plan G and Part D prescription drug plan that also begin Jan. 1.
Now my Medicare stress has started, because I have received a notice from the Centers for Medicare and & Medicaid Services saying they do not have a record of me having prescription drug coverage that “met Medicare’s minimum standards” from March 1, 2019, when I turned 65, to Jan. 1, 2026, when I retired, and I may receive a Part D late enrollment penalty.
I thought applying for Part B with the form from my employer kept me from this Part D penalty. Can you please advise me what to do to keep from making a mistake? Thank you, Toni.
— Zach from Houston, Texas
Hi Zach,
Many Americans retiring after 65 and leaving their employer health insurance plan are discovering that they have to prove they had “creditable drug coverage” when enrolling in their new Medicare Part D prescription drug plan.
Zach, enrolling properly in Medicare Part B does not prove that your employer’s group prescription drug plan was creditable. According to the 2026 Medicare & You handbook on page 84, there are three ways to avoid paying a penalty:
1. Get Medicare drug coverage (Part D) when you’re first eligible for it. “Even if you don’t take drugs now, you should consider joining a separate Medicare drug plan or a Medicare Advantage Plan with drug coverage to avoid a penalty,” it advises.