After how many days without creditable prescription drug coverage is an LEP assessed by CMS?

The correct information regarding the Late Enrollment Penalty (LEP) relates to the period after which an individual is assessed this penalty by the Centers for Medicare & Medicaid Services (CMS). Specifically, the LEP is assessed after a beneficiary goes without creditable prescription drug coverage for a continuous period of 63 days or more.

This 63-day threshold has been established to encourage individuals to maintain their enrollment in a prescription drug plan or to seek coverage when they initially become eligible for Medicare. If individuals do not enroll in a plan and wait longer than the specified period, they may face higher premiums when they finally choose to sign up for coverage as a penalty for their delay. Understanding this timeline is crucial for beneficiaries in order to manage their healthcare costs effectively.