Question

What is the amount added to the member's monthly plan premium if they did NOT enroll in a Medicare Advantage plan with Part D benefits or stand-alone prescription drug plan when they were first eligible for Medicare Parts A and/or B or went without creditable prescription drug coverage for 63 or more continuous days?

a Late Enrollment Deductible (LED)
b Late Election Penalty (LEP)
c Late Enrollment Premium (LEP)
d Late Enrollment Penalty (LEP)

Answer 1

The amount added to a member's premium in this situation is called a Late Enrollment Penalty (LEP).

Step-by-step explanation:

The amount added to a member's monthly plan premium if they did NOT enroll in a Medicare Advantage plan with Part D benefits or stand-alone prescription drug plan when they were first eligible for Medicare Parts A and/or B or went without creditable prescription drug coverage for 63 or more continuous days is called a Late Enrollment Penalty (LEP). This penalty is added to the monthly premium and remains for as long as the member has the plan.