What could be a consequence of not enrolling in a Part D plan during the initial eligibility period?

The consequences of not enrolling in a Part D plan during the initial eligibility period include an increased premium penalty that may apply when the individual eventually decides to enroll. This penalty is designed to encourage timely enrollment in a prescription drug plan to maintain a healthy insurance pool. If a person chooses to delay their enrollment, they may face higher costs because their monthly premiums can be increased by 1% for every month they went without coverage after becoming eligible. This penalty persists for as long as the individual remains enrolled in Part D, which can lead to significant financial implications over time.

The other potential choices do not accurately reflect the primary consequence of missing the initial enrollment period. There is no automatic assignment to a plan, loss of future Medicaid eligibility, or a blanket prohibition against enrolling until the next year, as individuals have opportunities to enroll during special enrollment periods or during the annual enrollment period.