[Verified Answer]: Mrs

Mrs. Castro has just turned 65, is in excellent health and has a relatively high income. She uses no medications and sees no reason tospend money on a Medicare prescription drug plan if she does not need the coverage. She currently does not have creditable coverage.What could you tell her about the implications of such a decision? a. If she does not sign up for a Medicare prescription drug plan as soon as she is eligible to do so, and if she does sign up at alater date, she will have to pay a one-time penalty equal to 10% of the annual premium amount. b. If she does not sign up for a Medicare prescription drug plan as soon as she is eligible to doso, and if she does sign up at a later date, she will be required to pay a higher premiumduring the fi rst year that she is enrolled in the Medicare prescription drug program. Afterthat point, her premium will return to the normal amount.  Incorrect: The premiumpenalty exists as long asthe enrollee has Part Dcoverage. c. If she does not sign up for a Medicare prescription drug plan, she will incur no penalty, as long as she can demonstrate thatshe was in good health and did not take any medications. d. If she does not sign up for a Medicare prescription drug plan as soon as she is eligible to do so, and if she does sign up at alater date, her premium will be permanently increased by 1% of the national average premium for every month that she wasnot covered.