Dear Liz: I did not enroll in Part D prescription coverage when I enrolled in Medicare in 2005 because I was not taking any prescriptions at the time. When I enrolled a few years later, I was penalized $11 per month for late enrollment and I must pay this penalty until I die. What is the reasoning and logic behind this rule except to benefit the insurance companies? I’ve complained to Medicare.
Answer: You can complain until you’re blue in the face, but this is how insurance works.
Insurers — and the largest payer of healthcare services, Medicare — need a large pool of healthier people paying premiums to offset the costs incurred by the sicker ones. If only sick people bought insurance, premiums would skyrocket, making healthcare even more expensive than it already is.
Can you explain how Part D prescription called Well Care offers a no cost monthly fee. I was paying a small amount before and have no prescriptions, so I
switched to this plan. It seems that any possibly future costs will balance out since I am no longer paying the monthly fee..which would have been over $500.00 for 2025! Also, how is it that pharmacy cards work.. I had a friend who got grand reductions on an outrageous prescription using 2 of the pharmacy cards since the PAID insurance for Part D still cost too much. Thanks!
Licensed Medicare Health Agent here. The Part D penalty fee is no different than the IRS assessing interest or penalties on unpaid taxes. The Part D penalty fee does NOT benefit insurance companies. It is a penalty for nor signing up for prescription drug coverage when you’re supposed to. It doesn’t matter whether you need Rx coverage or not at the time. There’s also penalties assessed for not taking Part B when you’re supposed to, as well. There’s ways to avoid the Part B & D penalties, and you can also appeal for the penalty to be reduced and/removed. CMS penalty fees are used to fund other CNS programs such as the Medicare Savings Program, LIS/Extra Help program, etc.