What is a potential penalty for late enrollment in Medicare Part B?

The correct answer highlights a key aspect of Medicare Part B enrollment that affects beneficiaries financially. If an individual does not enroll in Medicare Part B when they first become eligible and instead decides to enroll later, they face a penalty in the form of increased premiums. Specifically, the penalty is a 10% increase in premiums for each full 12-month period that enrollment is delayed. This means that for every year someone waits to enroll after their initial eligibility, their premiums are permanently increased by that percentage.

This penalty serves as an incentive for individuals to enroll when they first qualify to ensure they can access necessary healthcare without incurring additional costs later on. Understanding this aspect of Medicare Part B is crucial for beneficiaries in planning their healthcare and finances effectively. The other options do not accurately reflect the policy regarding late enrollment penalties, making this the correct choice.