6. If a Part D plan enrollee stops needing prescription drugs and disenrolls from the plan, would s/he be required to pay a penalty premium if he/she wants to re-enroll at a later date?

Anyone who is eligible for Part D and is without creditable coverage will be subject to a penalty premium if and when s/he re-enrolls into a Part D plan.  Medicare beneficiaries are limited to enrolling in Part D plans during Enrollment Periods that are available to them.  For most Medicare beneficiaries (not including the full duals and those in Medicare Savings Programs), disenrolling from a Part D plan during the plan year will render them ineligible to re-enroll until the Annual Coordinated Election Period (November 15, 2006 – December 31, 2006). Coverage would then be effective on January 1, 2007.  These beneficiaries would be subject to a penalty premium equal to 1% per month for every month they were eligible for Part D, but did not have creditable coverage.

(Back to Questions about Penalties)