An individual delays enrolling in Medicare Part A for 3 years after first becoming eligible and has no coverage that would excuse the delay. If the person must pay a Part A premium, the Part A late enrollment penalty is:

Why A is correct

The Part A late enrollment penalty applies to beneficiaries who must pay a Part A premium (those without 40 work credits). The penalty is 10% of the monthly premium, added for twice the number of full years the person was eligible for Part A but not enrolled. For a 3-year delay, the 10% surcharge applies for 6 years. This structure is distinct from the Part B penalty (10% for each 12 months, applied for life) and the Part D penalty (1% per uncovered month, for life).

Why the other options are wrong

• B) There is no flat-dollar fine for late Part A enrollment; the penalty is a percentage surcharge on the monthly premium. The penalty is a percentage added to the monthly premium.
• C) The 1%-per-month-for-life formula is the Part D late enrollment penalty, not the Part A penalty. The Part D penalty is 1% of the base premium per uncovered month, for life.
• D) Part A carries a penalty for late enrollment when the beneficiary must buy it; only those who were exempt (e.g., covered under a working spouse's employer plan) avoid it.

Memory hook

Part A penalty = 10% times 2x the years of delay. Three years late means a 10% surcharge for six years.