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What is the Part D Late Enrollment Penalty?
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The late enrollment penalty is an amount that is added to the Part D premium. A late enrollment penalty may be assessed if one of the following is true:
• A senior fails to sign up for a Medicare drug plan when first eligible for Medicare, and did not have other creditable prescription drug coverage.
• There was a break in Medicare prescription drug coverage or other creditable coverage of at least 63 days in a row. 

Note:   There is no a late enrollment penalty for those with the Extra Help program 

To avoid paying a penalty:
Join a Medicare drug plan during the initial eligibility period.Maintain continuous coverage with a Medicare drug plan or other creditable coverage. Creditable prescription drug coverage could include drug coverage from a current or former employer or union, TRICARE, or the Department of Veterans Affairs.Inform the Medicare drug plan regarding other creditable coverage. Provide documentation about if creditable coverage is in place from a non-Medicare source. 

Appealing the penalty:
A late enrollment penalty can be a reviewed or reconsidered. Fill out a reconsideration request form from the drug plan and provide proof that supports the case against paying. Such as information about previous prescription drug coverage.     
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