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What market failure does this penalty address

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Reference no: EM133232392

A person may sign up for Part D insurance as soon as they reach age 65 and before the closing of their enrollment window, which is about 90 days after their birthday. If they choose not to sign up for Part D as soon as they are eligible and then at a later date decide to enroll in Part D, they will face a penalty fee, which is added to their monthly Part D premium. For every month, they delayed enrolling in Part D from when they were eligible, a 1% penalty is added to the base premium. In 2019, the base premium was $33.19 per month for Part D insurance.

What market failure does this penalty address?

Reference no: EM133232392

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