The good news: You will not be assessed a late-enrollment penalty if you:"... even if the person decides to join another Medicare drug plan, he or she will still have to pay the penalty once enrolled in a new plan. This also means that if a person joins a plan that has a $0 monthly premium, he or she will still owe a penalty."
"Chapter 6. What you pay for your Part D
prescription drugs
Section 8.1 What is the Part D “late enrollment penalty”?
Note: If you receive “Extra Help” from Medicare to pay
for your prescription drugs, you will not pay a late enrollment penalty.
The late enrollment penalty is an amount that is added to
you Part D premium. You may owe a late enrollment penalty if at any time after
your initial enrollment period is over, there is a period of 63 days or more in
a row when you did not have Part D or other creditable prescription drug
coverage. “Creditable prescription drug coverage” is coverage that meets
Medicare’s minimum standards since it is expected to pay, on average, at least
as much as Medicare’s standard prescription drug coverage. The amount of the
penalty depends on how long you waited to enroll in a creditable prescription
drug coverage plan any time after the end of your initial enrollment period or
how many full calendar months you went without creditable prescription drug
coverage. You will have to pay this penalty for as long as you have Part D
coverage. The late enrollment penalty is added to your monthly premium. When
you first enroll in [this Medicare Advantage plan], we let you know the amount
of the penalty.
Your late enrollment penalty is considered part of your
plan premium. If you do not pay your late enrollment penalty, you could lose
your prescription drug benefits for failure to pay your plan premium."
As a reminder: "Creditable prescription drug coverage" is drug coverage
that is at least as good as a Medicare Part D plan and does NOT
include: