A beneficiary delays enrollment in Medicare Part B for 24 months after first becoming eligible, with no creditable coverage during that time. What is the resulting Part B late-enrollment penalty?

Why B is correct

The Part B late-enrollment penalty is 10 percent of the monthly premium for each full 12-month period the beneficiary was eligible for Part B but failed to enroll, and the penalty is paid for as long as the beneficiary remains enrolled in Part B. Delaying for 24 months equals two full 12-month periods, producing a 20 percent premium increase that lasts for life. The objectives state this as a 10 percent lifetime penalty per each 12-month period not enrolled, and the fact table confirms the 10 percent per 12-month lifetime structure tested under AH-III.D.1b.

Why the other options are wrong

• A) The penalty is a percentage surcharge added to the monthly premium, not a one-time fine equal to two years of premiums.
• C) Ten percent applies per 12-month period, so two periods yield a 20 percent surcharge, and the penalty is lifetime, not one year.
• D) Part B is voluntary, but failing to enroll when first eligible and without creditable coverage does trigger a penalty.

Memory hook

Part B late = 10% per year missed, added to the premium for life.