How are Part D late enrollment penalties handled if you switch plans or enroll on time?

• A. The penalty can be reduced if you have credible drug coverage and if you enroll during the appropriate Special Enrollment Period; penalties apply to the time you were not enrolled.
• B. The penalty cannot be reduced under any circumstances.
• C. Penalties are waived if you have any coverage.
• D. Penalties apply to only the year you were not enrolled.

Answer: (A)