If a customer accrues a late penalty for not accepting Medicare before a certain limit, to what is the penalty added?

The correct answer indicates that the late penalty for not enrolling in Medicare on time is added to the monthly plan premium. This reflects how Medicare handles situations of late enrollment, specifically regarding Part B and Part D.

When individuals choose to delay enrollment in Medicare, they may incur a late enrollment penalty calculated based on how long they delayed their enrollment past the initial eligibility period. This penalty is expressed as an increased premium that is added to the standard monthly premium, making it higher than what others who enrolled on time are paying.

This system is designed to incentivize timely enrollment and ensure that individuals do not wait until they need healthcare services to sign up. The penalty is an ongoing addition to the monthly premium, rather than a one-time charge or adjustment to other costs such as deductibles or out-of-pocket limits. Consequently, the implications are significant for those who may delay, as they will face higher ongoing costs for their Medicare coverage.