What happens if someone enrolls in Part D late?

Enrolling in Medicare Part D after the Initial Enrollment Period can result in a late enrollment penalty. This penalty is an amount that is added to the monthly premium for Medicare Part D coverage. The penalty is calculated based on the number of months that an individual was eligible for Part D but did not enroll in a plan and did not have other creditable prescription drug coverage.

Once a person is assessed this penalty, it continues for as long as they have Part D coverage. This serves not only as a financial consequence but also as an incentive to enroll during the available enrollment periods. Understanding the late enrollment penalty is crucial for beneficiaries to avoid unexpected costs in their Medicare Part D premiums.