Common use of Prescription Drug Coverage Late Enrollment Penalty Clause in Contracts

Prescription Drug Coverage Late Enrollment Penalty. The late enrollment penalty is an amount that's permanently added to your Medicare drug coverage (Part D) premium. You may owe a late enrollment penalty if at any time after your Medicare Initial Enrollment Period is over, there's a period of 63 or more days in a row when you don't have Medicare drug coverage or other creditable prescription drug coverage. You’ll generally have to pay the penalty for as long as you have Medicare drug coverage. You can contact your LIFE social worker for more information about whether this applies to you.