A worker who does not qualify for premium-free Medicare Part A delays enrollment for 3 years after first becoming eligible at age 65, without other coverage. When he eventually enrolls, his Part A monthly premium will be:

Why A is correct

Medicare Part A has a late-enrollment penalty for people who must pay a premium for Part A, do not sign up when first eligible, and do not qualify for an exception such as employer group coverage. The penalty increases the monthly Part A premium by 10% for a number of years equal to twice the number of years the person was eligible but not enrolled. A three-year delay therefore produces a 60% surcharge, 10% for each of six penalty years, that persists for twice the delay period. There is no way around the penalty once the delay exceeds the protected period.

Why the other options are wrong

• B) The Part A penalty is a percentage surcharge applied to the monthly premium over a period of twice the delay, not a one-time fixed payment.
• C) Part A does have a late-enrollment penalty for those who must pay a premium and delay without other coverage.
• D) The 10% surcharge applies per year for twice the delay period; it does not expire after five years.

Memory hook

Part A penalty: 10% for each year, doubled. Delay 3 years, pay 60% more, for 6 penalty years.