Late Enrollment Penalty

Medicare Late Enrollment Penalty (LEP)


A late enrollment penalty (LEP) is a monthly premium penalty calculated and assessed by the Centers for Medicare & Medicaid Services (CMS).
 

Avoiding Medicare LEP

 
If you do not enroll in a Medicare prescription drug plan (PDP) by the end of your Medicare Initial Enrollment Period (IEP) for Part D and do not have creditable prescription drug coverage for any continuous period 63 days or longer, you may have to pay an LEP.
 
You may choose to continue your drug coverage in another plan and not enroll in a Medicare Part D plan without an LEP if the other coverage is at least as good as the Medicare drug benefit.
 
You can avoid a late enrollment penalty (LEP) by:
 
  • Enrolling in a Medicare prescription drug plan (PDP) before the end of your Medicare Initial Enrollment Period (IEP) for Part D
  • Continuing your drug coverage in another plan with coverage that is at least as good as the Medicare drug benefit

Other LEP exceptions may include:
 
  • Members with a low income subsidy (LIS)
  • Members affected by Hurricane Katrina
  • Members receiving assistance from a state pharmaceutical assistance program (SPAP)

You are now leaving the TakeCare Rx Plus website.

The information you will be accessing is provided by another organization or vendor. If you do not intend to leave our site, please click Close.

Need help? Meet with a local sales agent

Please contact a licensed TakeCare sales agent for help selecting the Medicare product best for your needs.



Close Continue