The functionality assists individuals in estimating a potential financial surcharge applied to Medicare Part D prescription drug coverage. This surcharge is incurred when enrollment in a Medicare Part D plan is delayed beyond the initial enrollment period, absent creditable prescription drug coverage from another source. For example, an individual who becomes eligible for Medicare at age 65 but does not enroll in Part D until age 67, and lacks other creditable coverage, may be subject to this penalty.
Accurate estimation of this penalty is crucial for informed decision-making regarding prescription drug coverage. Understanding the potential cost implications of delayed enrollment allows beneficiaries to better plan their healthcare expenses and avoid unexpected financial burdens. Historically, the penalty was implemented to encourage continuous enrollment in Part D, thereby promoting a broader risk pool and helping to control overall program costs.
