Mr. Kelly has substantial financial means. He enrolled in Original Medicare and purchased a Medigap policy many years ago that offered prescription drug coverage. The prescription drug coverage has not been comparable to that offered by Medicare Part D for several years and despite notification, Mr. Kelly took no action. Which of the following statements best describes what will occur if Mr. Kelly now decides to enroll in Medicare Part D?
Choose one answer.
a. He will incur a one-time financial penalty equal to 30 percent of the annual Part D premium.
b. He will not be able to enroll in Part D unless he decides to also enroll in a Medicare Advantage plan.
c. He will avoid any financial penalty or late enrollment fee under the grandfathering provisions of Medicare Part D.
d. He will incur a late enrollment penalty.
Correct answer is option D. He will incur a late enrollment penalty.
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