California Health Insurance News 
Articles / Brokers and Agents answer Medicare Part D questions for Seniors
09/27/2005
"How do I enroll in Medicare Part D and what are the penalties if I don't?" are usually the first questions posed by seniors to their agent or broker.
As the new Medicare Part D Plans are being announced in California this week, Seniors will be confused on how to enroll in the new plan and when they will be eligible to enroll. Probably the biggest question asked would be "Will I have to pay a penalty if I don't enroll in the open enrollment period?"
All seniors will be required to fill out an application for the Medicare Prescription Drug Coverage Program with the plan that they select. Once you enroll, the program will inform Medicare that you have joined.
Medicare Part D will have an introductory six-month enrollment period for people with Medicare from November 15, 2005, through May 15, 2006. After that, an enrollment period will be offered each year from November 15 through December 31 for the following January. During this time, people with Medicare can enroll in Part D if they previously chose to delay enrollment, or if they want to switch Prescription Plans.
"What happens if I don't enroll this November?" When the new Prescription Coverage Plan takes effect, there will be a huge penalty for those who wait to enroll after the initial enrollment period. The penalties will be an extra one percent per month, so for every year you don't apply, you can pay an extra 12% per month for the rest of your life.
"Part D was designed to encourage people with Medicare to sign up at the youngest possible age. Signing up now will help hold down the overall costs of the drug program which helps all taxpayers" says David Thau, CEO and Founder of Keep It Simple Insurance. "It could cost you hundreds or thousands of dollars if you adopt a "wait and see" attitude and don't enroll within the six month period November 15th 2005 to May 15th 2006."
