When is an individual subject to penalties related to Medicare enrollment?

An individual is subject to penalties related to Medicare enrollment primarily if they miss their Initial Enrollment Period and do not enroll during the General Enrollment Period. The Initial Enrollment Period is a critical window that begins three months before an individual turns 65 and ends three months after their birthday month. Missing this period means they may face higher premiums for late enrollment, which can be significant—up to 10% for every 12-month period they waited to enroll in Medicare Part B after they were first eligible.

The General Enrollment Period, which runs from January 1 to March 31 each year, provides a chance to sign up for Medicare Part A and Part B if someone missed the Initial Enrollment Period. However, those who delay enrollment without a qualifying reason, such as having credible insurance, are penalized.

In contrast, late payments are not the source of enrollment penalties, and not using benefits or age-specific enrollment rules do not trigger penalties either. Thus, missing the appropriate enrollment periods directly correlates to facing enrollment penalties, making it the correct scenario regarding enrollment-related penalties.