What is the consequence of not having Medicare Part D when it’s required?

When an individual does not enroll in Medicare Part D when first eligible, they may face a late enrollment penalty. This penalty is an additional cost that is added to their monthly premium for Part D, which can increase the longer they go without coverage. The penalty is intended to encourage individuals to sign up for prescription drug coverage when they are first eligible, as it helps to spread the financial risk among all beneficiaries.

It's important for beneficiaries to understand that the late enrollment penalty is not a one-time fee—it can be a lifelong penalty that compounds over time, making it crucial to enroll during the initial eligibility period to avoid these additional costs. This creates a systematic incentive to ensure coverage is maintained, thereby supporting the overall sustainability of the Medicare program.