What type of coverage triggers a Late Enrollment Penalty according to CMS?

The Late Enrollment Penalty (LEP) applies specifically to individuals who do not enroll in a Medicare prescription drug plan (Part D) when they first become eligible, and this is particularly relevant for those who have no other creditable prescription drug coverage. Creditable prescription drug coverage is defined as drug coverage that is expected to pay, on average, as much as the standard Medicare prescription drug coverage.

When a beneficiary loses their creditable prescription drug coverage and does not enroll in a Medicare Part D plan in a timely manner, they may be subject to a penalty when they finally do enroll. This penalty is calculated based on the number of months they were eligible for Part D coverage but did not enroll and did not have creditable coverage. Therefore, the connection between the LEP and creditable prescription drug coverage highlights how essential it is for individuals to understand their drug coverage options and the implications of their enrollment decisions.

Other types of coverage listed, such as emergency coverage, basic health coverage, and supplemental insurance, do not specifically relate to the enrollment deadlines and penalties associated with Medicare prescription drug coverage. Thus, they do not trigger the Late Enrollment Penalty as creditable prescription drug coverage does.