What will Medicare charge if someone doesn't enroll in certain Medicare programs or plans when they're first eligible?

The correct answer is that a Late Enrollment Penalty is charged when someone doesn't enroll in certain Medicare programs or plans when they are first eligible. This penalty acts as a financial incentive for individuals to enroll in Medicare when they first qualify.

Specifically, it applies to Medicare Part B and Medicare prescription drug coverage (Part D). If a person delays enrollment in either of these plans and does not have credible coverage from another source, they may incur a penalty that results in higher monthly premiums for the service. This penalty is typically calculated based on the length of time the individual was eligible but did not enroll, leading to an increased premium for as long as they remain enrolled in the program.

The notion of imposing a late enrollment penalty underscores the importance of timely enrollment and helps to ensure that individuals maintain coverage for necessary health services, which is crucial as they age or require more medical attention.