Part D Special Enrollment Period (SEP)

A Part D Special Enrollment Period (SEP) is a period of time outside of the Part D Initial Enrollment Period when eligible individuals can enroll in, switch, or drop their Medicare Part D prescription drug plan. Here are the key features of the Part D Special Enrollment Period:

• Eligibility: There are several situations that may trigger a Part D SEP, including moving out of your plan's service area, losing creditable prescription drug coverage, or qualifying for Extra Help to pay for prescription drugs.

• Enrollment: During a Part D SEP, you can enroll in a Part D plan that is offered in your area, switch from one Part D plan to another, or drop your Part D coverage altogether.

• Coverage Start Date: If you enroll in a Part D plan during a SEP, your coverage will begin on the first day of the month following your enrollment.

• Late Enrollment Penalty: If you don't have creditable prescription drug coverage for 63 days or more after your initial enrollment period or a special enrollment period ends, you may face a late enrollment penalty if you decide to enroll in a Part D plan later. The penalty is calculated as a percentage of the national base beneficiary premium for each month you were eligible for Part D but didn't enroll.

Example:

Mary moves to a new state and her current Part D plan is not available in the new service area. This change triggers a Part D SEP, allowing her to enroll in a new Part D plan that is available in her new location.

During her Part D SEP, Mary can choose a new Part D plan that is available in her new location, switch from her current Part D plan to a new one, or drop her Part D coverage altogether. If Mary enrolls in a new plan during her Part D SEP, her coverage will start on the first day of the month following her enrollment.

If Mary doesn't enroll in a new Part D plan during her Part D SEP and goes without creditable prescription drug coverage for 63 days or more, she may face a late enrollment penalty if she decides to enroll in a Part D plan later. The penalty is calculated as a percentage of the national base beneficiary premium for each month she was eligible for Part D but didn't enroll.