7.  If someone fails to enroll in a Part D plan by May 15th, is the penalty calculated based on 7 months (June-December 2006) or does that person get the 63 days to get into a plan before the penalty premium would be applied (August-December 2006)?

The late enrollment penalty is calculated based on each month that an individual is eligible for Part D but does not have creditable coverage.  Thus, the penalty for those who do not enroll in a plan by May 15th and do not have creditable coverage will be based on June to December 2006 (7 months), in which case the penalty premium will be equal to seven percent. 

Reference Information

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