What occurs if an individual does not sign up for Medicare during their Initial Enrollment Period?

When an individual does not sign up for Medicare during their Initial Enrollment Period, the correct outcome is that they may have to pay a late enrollment penalty. This penalty is intended to encourage timely enrollment and can apply to different parts of Medicare, such as Part A and Part B.

For Part B, in particular, individuals who do not enroll when they are first eligible could face a monthly premium increase for every 12-month period they were eligible but did not sign up. The penalty can add a significant amount to their costs in the long run, thereby encouraging early enrollment during the designated period.

Other options suggest that individuals would lose their opportunity altogether, be limited to enrolling only at an advanced age, or automatically receive coverage without taking action. However, the reality is that even after the Initial Enrollment Period ends, individuals still have options such as the General Enrollment Period to sign up, albeit with potential penalties.