The Late Enrollment Penalty (LEP) does not apply to Low-Income Subsidy (LIS) members or members with creditable coverage. Is this statement true or false?

The statement is true. The Late Enrollment Penalty (LEP) for Medicare Part D is designed to encourage timely enrollment in a prescription drug plan. However, individuals who qualify for the Low-Income Subsidy (LIS) are exempt from this penalty. The LIS is intended to assist those with limited income and resources in affording their prescription drug costs, and applying the LEP would impose an additional financial burden that goes against the purpose of the subsidy.

Additionally, the LEP does not apply to members who have "credible coverage," which refers to prescription drug coverage that is at least as good as Medicare's standard Part D. This means that if members had other valid prescription drug coverage when they were first eligible for Medicare but did not enroll in a Part D plan, they would not be penalized for late enrollment.

Thus, the correct understanding is that both LIS members and those with creditable coverage are exempt from the Late Enrollment Penalty, making the statement accurate.