Medical Expense✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
An individual delays enrolling in Medicare Part D for 14 months while having no creditable prescription drug coverage. When they finally enroll, the late enrollment penalty is:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The Part D late enrollment penalty is calculated as 1% of the national base beneficiary premium for each uncovered month (months without Part D or other creditable coverage), added to the monthly premium permanently — for life. The penalty is avoidable only by maintaining creditable coverage, which is why agents must check for it. This is a signature Part D exam number.
Why the other options are wrong
- B) There is no one-time lump-sum fine; the penalty is a permanent addition to the monthly premium.
- C) The penalty is not a 10% surcharge for a limited period; it is 1% per uncovered month for life.
- D) Part D enrollment is voluntary, but there IS a late penalty — voluntariness does not mean penalty-free.
Memory hook
Part D penalty = 1% per month, forever. 14 uncovered months = a 14% permanent premium mark-up.