3. What penalty, if any, would a person be charged if at first they decide to stay out of a plan, but then his or her situation changes and s/he now qualifies under SLMB/QMB/QI?

The amount of the standard premium penalty was established by the MMA regulations.  The standard penalty amount is reduced only for full subsidy eligible individuals and is only charged for 5 years.  The reduced premium penalty equals approximately $0.32 per month in 2007 for full subsidy eligible individuals (full duals) who went without creditable coverage for more than 63 days. 

Reference Information

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