Which statement accurately describes Late Enrollment Penalty timing?

• A. A one-time enrollment fee.
• B. An amount added to the monthly premium if late enrollment or lapse in creditable coverage.
• C. A tax credit.
• D. A discount on premiums for low-income individuals.

Answer: (B)

Timing for a Late Enrollment Penalty means this penalty shows up as part of your monthly premium, starting the month you enroll (or regain creditable coverage) and continuing with each monthly premium thereafter. It’s not a one-time fee or a tax credit or a discount. The penalty is tied to how many months you were without creditable coverage, and that amount is added to your ongoing premium for as long as you have the coverage.