Which of the following is true regarding the penalties for late enrollment in Medicare Part B?

The correct understanding around the penalties for late enrollment in Medicare Part B is that penalties apply to individuals who do not sign up for Part B when they are first eligible and then choose to enroll later. In this situation, individuals are charged a penalty that increases for each full "12-month period" that they delay enrollment. Specifically, for every 12 months a person delays enrolling in Part B, their premium increases by 10%. This means that if someone waits 24 months to enroll, their penalty would be 20% added to their monthly premium.

This system is designed to encourage timely enrollment in Medicare Part B, ensuring that individuals take advantage of the benefits when they first become eligible. The other options suggest incorrect limitations or misunderstandings about how penalties work, such as suggesting they only apply to low-income individuals or that they accumulate by a specific percentage per year. Additionally, while penalties do exist under certain circumstances for those who are under 65, they are not waived simply due to age; thus, it is important for all eligible individuals to be mindful of their enrollment periods.