An example of the penalty is that if you don’t sign up for Medicare Part B by your deadline and it’s been less than a year since you were eligible, then you can be charged an extra premium. This charge will continue until the next enrollment period when you choose to enroll in this insurance program.

If you waited to sign up for Medicare until age 65, the penalty calculation will be done from the time that has passed between the end of your Initial Enrollment Period (IEP) this is the time frame, 3 months before your 65^th birthday and 3 months after your 65^th birthday IEP. If you delayed signing up for Medicare because you were covered by health insurance from an employer, then the penalty calculation will be made from when you left work to when you enrolled in Medicare Part B. It is important to point out that as long as you have credible Health insurance from your employer you will not be charged a penalty, Once you no longer have insurance from your employer for a maximum period of 8 months and have not signed up for your Medicare Part B your penalty will start

So, for example, if your penalty was based on the number of years you spent  without Part B, it would always be an extra 10% of the standard Part B premium in any given year if that period covered five full years. This would be added to your Part B premiums for as long as you remain enrolled in the program. If the regular rate rises or drops in a year, so does your penalty. 

It is crucial to note that if you do not meet your enrollment deadline, having retiree health insurance or COBRA continuation coverage from a previous employer after age 65 will not save you from Part B late fees. COBRA and retirement benefits are neither recognized as employee insurance nor qualifying alternative coverage for calculating Part B late penalties.