What consequence may Mrs. Quinn face if she doesn't enroll in a Medicare prescription drug plan when eligible?

The correct answer highlights the importance of timely enrollment in a Medicare prescription drug plan. If Mrs. Quinn does not enroll when she is first eligible, she may face a permanent penalty that amounts to a 1% increase of the national average premium for each month that she goes without coverage. This penalty can significantly increase the cost of her premiums once she decides to enroll later.

This rule is designed to encourage individuals to sign up for a prescription drug plan when they are eligible, thereby avoiding gaps in coverage that could lead to higher costs in the future. The penalty is calculated based on how long the individual was eligible but did not enroll, thus making it a long-term financial consideration.

Understanding the implications of failing to enroll in a timely manner is crucial for beneficiaries to make informed decisions regarding their Medicare coverage and manage their healthcare expenses effectively. It reinforces the importance of being proactive about enrollment to avoid long-term financial penalties.