What is the effect of not having Medicare Part D coverage when first eligible?

Choosing not to enroll in Medicare Part D when first eligible can lead to significant long-term financial implications due to the late enrollment penalty. This penalty is designed to encourage timely enrollment and is applicable if an individual decides to enroll in Part D at a later date without having other qualified drug coverage. The penalty adds a percentage to the premium for every month the individual was eligible but did not enroll, which can increase overall drug costs in the long run.

This feature of Medicare Part D emphasizes the importance of maintaining continuous coverage to avoid extra costs. It encourages individuals to consider their current and future health needs when deciding on enrollment during the initial eligibility period, as delaying coverage can lead not only to potential financial burdens but also to gaps in medication access during that time.