What is the term for the amount added to the member's monthly plan premium due to late enrollment in Medicare Part D?

The term for the amount added to a member's monthly plan premium due to late enrollment in Medicare Part D is the Late Enrollment Penalty (LEP). This penalty is a critical component of Medicare's design to encourage timely enrollment in Part D, which is the prescription drug coverage program.

When individuals do not enroll in a Medicare Part D plan when they are first eligible, and they go without creditable prescription drug coverage for 63 days or more, they may face a penalty if they choose to enroll later. The penalty is calculated based on the number of months the individual was eligible but not enrolled in a Part D plan and can significantly increase monthly premiums.

Understanding the Late Enrollment Penalty is essential for beneficiaries, as it reflects the importance of maintaining continuous drug coverage to avoid added costs in the future. This ensures that individuals are motivated to enroll promptly and remain eligible for benefits without incurring additional financial burdens.