What is the amount added to the member's monthly plan premium if they did NOT enroll in a Medicare Advantage plan with Part D benefits when first eligible?

The Late Enrollment Penalty (LEP) is a crucial concept in Medicare, particularly for beneficiaries who do not enroll in a prescription drug plan, such as a Medicare Advantage plan with Part D benefits, when they first become eligible. If individuals choose to delay their enrollment in these plans, they may incur this penalty, which is added to their monthly premium.

The penalty is intended to encourage timely enrollment as it helps to mitigate the costs associated with late joiners who may need more medical care due to delayed coverage. The amount of the LEP is calculated based on the number of months the individual was eligible but did not have creditable prescription drug coverage. This penalty is a permanent addition to their monthly premium, reinforcing the importance of having coverage when initially eligible.

In the context of the other options, while the terms Late Enrollment Deductible and Late Election Penalty might sound similar, they do not accurately represent the established terminology or the concept of an added monthly premium due to delayed enrollment in Part D. The Late Enrollment Premium technically does not exist; it is commonly referred to as the Late Enrollment Penalty. Hence, the correct understanding of this penalty is essential for anyone involved in Medicare policy or administration.