The Medicare Drug Plan Late Fee: The Late Fee that Outlasts You
If you enroll in a Medicare Drug Plan after the deadline, you will be assessed a late fee for the rest of your life. Allow me to share a frustrating aspect of the Medicare Part D drug plans available to seniors.
If you were a senior in 2006 and you did not sign up for a drug plan by the deadline, you will be accessed a late fee for the remainder of your life when you do sign up. That is the fact that my mother and I'm sure many others are now living with.
In 2006 my mother seemed to be healthy and did not need the aide of medication.
All of that changed in August of 2008 when she was diagnosed with ovarian cancer. After the diagnosis and the chemotherapy started another condition developed called Supraventricular Tachycardia. That lead to the need of prescription drugs.
I went to the local pharmacy and was enrolled in the Humana drug plan.
It was explained that there would be a late fee because of the late sign up. That was fine and plus what choice do you have since the plan does lower the cost of the medication.
I didn't question or research and was just glad we had coverage.
Then 2009 came and the new billing coupon book was mailed out.
Needless to say the premium increased from $32 to $48.90 with $8.90 of that still regarded as a late fee.
Once again I thought well, maybe it will go away at the end of 2009 and of course what can you do about it.
Then today I get a notice in the mail that the account has a past due balance of $32.30. I knew this was not right because I have sent in every payment early including the January payment despite the fact they couldn't seem to get a billing coupon book out on time.
So I called customer service and that is when I discovered that the $32.30 owed is late fees that had not been paid in the beginning of the scenario and that the $8.90 late fee will remain a part of the premium for the remainder of my mother's life.
Has anyone ever heard of this before? A permanent late fee!
If you miss a credit card payment, at least they only charge you a late fee one time.
Could this drug plan permanent late fee set the precedent for other permanent late fee charges?
Of course my first reaction was to switch companies but guess what, it doesn't matter they all have to charge it.
The representative said it is a government fee that many disagree with.
Oh but guess what, Humana offers an insurance plan for $18 a month that would include drug coverage and some health coverage.
On the surface looks like a good deal, drop a $48.90 a month payment for an $18 month plan and get some insurance coverage.
The kicker, if you have a medicare supplement plan, you would have to get rid of it.
Are they crazy?
My mother is suffering from cancer, and that supplement is paying for what Medicare won't.
So in the end, my mother and others I'm sure, are stuck paying a late fee for eternity. A price they have to pay because they were healthy enough in 2006 and didn't need to support the drug companies.
So if you are a senior about to become of age to sign up for drug coverage and you currently don't need drugs.
Your choices are, ignore the plan until you need it, and then pay late fees forever, or sign up and pay a premium that you won't use until you get sick.
Either way the government gets you for some free money.
I suppose on the bright side of things, the premium is still a better deal than paying the full cost of the medication.
But come on lawmakers, enough with the late fee already.
Make it a one time fee and be done with it, do not give other organizations any ideas.
Before long we could end up with permanent late fees on everything.
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