Late Enrollment Penalty

Enrollment in any Medicare Part D program and coverage through the municipality is voluntary, with the same guidelines as Medicare Part B. If a member elects to enroll in Medex 2 or Managed Blue for Seniors through the municipality, they are required to be enrolled in Blue MedicareRxSM. Medical and prescription coverage may not be separated. If a member enrolls after their initial eligibility period, then, like Part B, a penalty will be placed on their premium. This is called the late enrollment penalty (LEP). The LEP will be indicated on the detailed monthly group bill. Unlike low-income subsidies, the LEP can be paid in total by the retiree or employer, or split between the two. Blue Cross Blue Shield of Massachusetts sends a survey to employers to find out whether they will pay the LEP on behalf of the member.

pdf Late enrollment penalty survey

If Blue Cross Blue Shield of Massachusetts does not know the status of the member's prior prescription program, the member will receive a letter requesting information on the prescription plan they had prior to joining Blue MedicareRx. To avoid these letters, the employer may send Blue Cross Blue Shield of Massachusetts an attestation of creditable coverage on behalf of the total membership being enrolled.