A 67-year-old who had to purchase Medicare Part A but did not enroll for two full years after turning 65, then enrolls, will...
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Medicare Part A's late-enrollment penalty is among the most aggressive in the program. For each 12-month period the beneficiary was eligible but failed to enroll, the monthly Part A premium increases by 10%, and that higher premium is charged for twice the number of years the person was not enrolled. A two-year delay therefore means a 20% surcharge (10% per year), payable for four years (twice the two-year gap). The penalty protects the program from people who delay paying premiums until they need hospital care. This two-times-duration rule is the precise formula tested in the Medicare eligibility section of the outline. (Note: a person with 40 or more work credits, who qualifies for premium-free Part A, owes no late-enrollment penalty at all.)
Why the other options are wrong
- B) Part A does carry a late-enrollment penalty of 10% per year applied to twice the delayed period.
- C) The penalty is a percentage premium surcharge, not a fixed one-time fine.
- D) Eligibility is not permanently lost; the penalty makes late enrollment expensive but not impossible.
Memory hook
Part A tardiness: 10% per year, charged for twice the wait.