Pdp lep who gets the money???

[DS4]

Does anyone know who benefits from the LEP?
The comapnies collect it-but where does it go?

I'll take a stab at this. I asked that question many years ago. The person in the know answered, " The carrier keeps it". I asked why? Generally, the person enrolling with LEP presents adverse selection. Why else would they enroll? The carrier keeping the LEP helps offset the adverse selection. Made sence to me.

 

[somarco]

The carrier keeping the LEP helps offset the adverse selection.

So, if the PDP premium is deducted from the SSA benefit, then SSA sends the LEP to the drug plan carrier?

 

[somarco]

I understand how the penalty works. I just didn't know if coming off of a MAPD might allow her to sneak through without getting the penalty, which will be about $60 a month.

Wife is 83 and enrolled in a MAPD 1/1/2022. Unless she had an SEP, she went 16 years without a drug plan. She should have been assessed an LEP which would carry forward if she gets a PDP.

Have I missed something?

 

[goillini52]

Wife is 83 and enrolled in a MAPD 1/1/2022. Unless she had an SEP, she went 16 years without a drug plan. She should have been assessed an LEP which would carry forward if she gets a PDP.

Have I missed something?

No. I didn't know if they had the penalty with a MAPD.

 

[somarco]

No. I didn't know if they had the penalty with a MAPD.

Penalties are assessed against MAPD policyholders . . . unless the carrier forgets to collect them

 

[sman]

No. I didn't know if they had the penalty with a MAPD.

The PD part of MAPD is the prescription drug plan. Therefore the penalty is assessed. If someone enrolled in a MA only plan, they would not be assessed the penalty until which time they enrolled in a PDP or MAPD.

 

[Todd King]

Whoever gets the LEP doesn't deserve the extra money. That's one thing that I know for sure!

 

[goillini52]

How long is a SOA good for? Can I get one now for October?