What if I choose not to enroll?

Enrollment in a PDP is voluntary for most Medicare beneficiaries (beneficiaries who qualify for Medicare Extra Help may be required to join a PDP). 

It is important to be aware: if a person chooses not to enroll in a PDP when eligible and does so in the future, they will be charged a penalty for late enrollment. This is a life long penalty that will follow the beneficiary with each PDP they enroll in.

The penalty is assessed by adding additional cost onto the premium of the plan the person enrolls. The penalty is 1% of the average plan premium per month that they were not enrolled in a PDP.

To avoid being penalized, a beneficiary must either join a Medicare Drug Plan or continue on credible coverage through an employer or Union plan.  Joining in a Medicare Drug Plan includes either an individual Drug Plan (PDP) or a Medicare Advantage Plan with Prescription Drug coverage (MA-PD).  When an individual is first eligible for Medicare, they should enroll to avoid penalty, unless they have creditable prescription drug coverage from an employer or Union plan. One must not go more than 63 days before enrolling in a PDP should credible coverage end.

Please click here for more information about creditable coverage.