What is the consequence of not enrolling in Medicare Part D when first eligible?

Enrolling in Medicare Part D when first eligible is crucial to avoid financial penalties in the form of increased premiums. If an individual does not sign up for Part D during the initial enrollment period, they may face a permanent increase in their monthly premium for Part D coverage if they choose to enroll later. This penalty is added to the standard premium for Part D and can significantly increase costs over time.

The intent behind this policy is to encourage timely enrollment, as delaying can lead to gaps in prescription drug coverage and increase overall healthcare costs for both the individual and the program. This consequence is especially impactful for those who require regular medication and could benefit from the coverage that Medicare Part D provides.