How much will my penalty be?

Your penalty is calculated when you first join a Medicare drug plan. To estimate your penalty, take 1% of the national average premium for the year you join (the 2007 amounts are on pages 175–180). Multiply it by the number of full months you were eligible to join a Medicare drug plan but didn’t. This is your estimated penalty amount, which is
added each month to your Medicare drug plan’s premium for as long as you have a plan. If you qualify for extra help, the penalty will be different. For help figuring your penalty amount, call 1 800 633 4227 or your State Health Insurance Assistance Program (see pages 154 – 160 for their telephone number).