3.  Is there a grace period for someone who has creditable coverage but then loses it?
If beneficiaries lose their creditable prescription drug coverage involuntarily, they will have a Special Enrollment Period (SEP) that begins the month of notification of the loss of coverage and ends two months after either the loss (or reduction) occurs or the individual received the notice, whichever is later. This Special Enrollment Period allows these beneficiaries to select and enroll in a Part D plan that best fits their needs. If such a beneficiary enrolls in a Part D plan during this SEP, no penalty will be added to his premium. If the beneficiary does not enroll in a Part D plan during this SEP, he will incur a penalty premium if he later enrolls into Part D during another enrollment period such as the Annual Coordinated Election Period. See HAP’s Step by Step Guide to Enrolling in a Medicare Drug Plan for more information. 

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