What is the consequence of not enrolling in Medicare Part D when first eligible?

• A. Ability to receive full Medicare benefits
• B. Immediate loss of Medicare coverage
• C. Potential late enrollment penalty if enrolling later
• D. Required re-enrollment in hospital insurance

Answer: (C)

When individuals do not enroll in Medicare Part D during their initial eligibility period, they may face a potential late enrollment penalty if they choose to enroll in the program at a later date. This penalty is designed to encourage timely enrollment in Medicare Part D and is calculated based on the number of months that an individual was eligible but did not have creditable prescription drug coverage. The penalty amount is added to the beneficiary's monthly premium, meaning that the longer one waits to enroll after their initial eligibility, the higher the penalty will be when they eventually sign up.

This consequence emphasizes the importance of enrolling during the designated period to avoid unnecessary additional costs. The late enrollment penalty serves as a financial incentive to ensure that beneficiaries take advantage of the prescription drug coverage when they first become eligible, rather than delaying enrollment and potentially facing higher costs in the future.