No Part D Late Enrollment Penalty for Low-Income Subsidy Eligible Beneficiaries

CMS announced elimination of the 2007 late enrollment penalty for any beneficiary eligible for the LIS [low income subsidy] for a Part D plan even if the beneficiary failed to sign up by the program’s initial deadline.

Generally, Medicare beneficiaries who are qualified to join a Medicare prescription drug plan, but choose not to enroll during their initial enrollment period, may be subject to a late enrollment penalty (LEP).

CMS is continuing the same exemption from the LEP for low-income Medicare beneficiaries as it did during 2006---which means that certain low-income Medicare beneficiaries can enroll in a Medicare prescription drug plan with no penalty through December 31, 2007.

The program is aimed at seniors who qualify for extra help paying for their Medicare prescription drug coverage. Certain other groups are also exempt from the late enrollment penalty, such as those who qualify for Medicare for the first time in 2007 and enroll in a prescription drug plan during their initial enrollment period.