Mr$.$ Diaz continued working with his company and was insured under his employer$$s group plan until he reached age $68.$ He has heard that there is a premium penalty for those who did not sign up for Part B when first eligible and wants to know how much he will have to pay. What should you tell him? Question $1$Answer a$.$ Mr$.$ Diaz will not pay any penalty because he had continuous coverage under his employer$$s plan. b$.$ During the first year, he is covered under Part B$,$ his premiums will be $10\%$ higher than they otherwise would be$,$ after which point they will return to normal. c$.$ Mr$.$ Diaz will pay a penalty, which will be a flat amount each year, paid during the first month of coverage. d$.$ The penalty will be a permanent $10\%$ increase in his Part B premium for every $12-$month period that passed during which he could have enrolled and did not.