Part D Plan Enrollment
When can I enroll in a Medicare Part D plan?
You can enroll in Medicare Part D prescription drug coverage as soon as you become eligible for Medicare Parts A, B, or A and B. For more details, please see Enrollment Periods/Guaranteed Rights. If you do not sign up when initially eligible, you also have the opportunity to join a plan during the Annual Election Period that runs from October 15 to December 7. You may also change plans during open enrollment. People who qualify for Low Income Subsidy (LIS), Extra Help for Part D prescription costs, are permitted to change plans month to month.
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Is it true I will have a penalty if I enroll in Part D late?
Yes, you will have a penalty added to your monthly Part D premium if all of the following are true:
- You don't join a Medicare drug plan when you're first eligible
- You didn't defer enrollment because you had other creditable prescription drug coverage (coverage Medicare considers to be at least as comprehensive as Medicare Part D)
- You later decide to join a Medicare drug plan
- You do not qualify for Low Income Subsidy (LIS), Extra Help for Part D costs
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How much is the late enrollment penalty?
The late enrollment penalty is equal to 1 percent of the benchmark figure for each month you were eligible for Part D but did not have it. The benchmark figure is the average monthly Part D premium for California for a given year, and it can change from year to year.
For example, if you did not have creditable prescription coverage and did not join a Part D plan until two years after you were first eligible to do so, your penalty would be 12 percent of the benchmark rate for the first year plus 12 percent of the benchmark rate for the second year. Refer to www.medicare.gov or call HICAP at 1-800-434-0222 for more information.