Just Another Late Payment Penalty?

We Americans are used to being financially penalized for failing to pay our monthly credit card minimum payment on time. Late payment of a home mortgage usually results in a monetary penalty. Late payment fees for car payments, and many other forms of monthly payment have become part of our lives for many of us. We know that the biggest penalty we can certainly incur is the one that the government charges for late payment of our income tax, unless an extension has been filed with the IRS.
Now we have a new wrinkle in government penalties. The fine for late sign up for the Medicare Prescription Plan. The deadline for enrolling in the Congressional approved Medicare Prescription Plan is next Monday. If people presently enrolled in Medicare don't sign up for the new "Plan" a financial penalty will be applied and will grow larger each month that the Medicare eligible Senior Citizen delays enrollment. This provision is very punitive for people who still wonder if this Plan will be best for their needs. People who are supposed to be recipients of governmental largesse, will be actually punished financially if they don't join now.
The first thing that comes to mind when I read that our President is "stumping" Florida encouraging seniors to join before Monday. Is the words "adverse selection".
Apparently the close to 1000 meetings in States around the US with senior citizens by government officials is to enroll enough more seniors to prevent a situation in which only those who will use this Plan join. Reduce the chance of "adverse selection."
Having spent over ten (10) years in the Health Insurance Industry as a mid-level executive. I am very familiar with the effect of "adverse selection". All Plans are actuarially designed with the purpose of preventing the pool of members from being only users. For a Plan to survive financially the premiums collected must not be less than the amount of money paid out to providers for services or products. This is most certainly the reason why President Bush is not only visiting Florida Senior Citizens, but also refuses to consider extending the deadline for sign ups without late "Fines." He and the Medicare officials are probably worried "adverse selection" could doom the Medicare Prescription Plan before it gets "off the ground."If this happens many of the "providers" signed up to provide the discounted prescription drugs will certainly loose money and may withdraw from the plan. This will reduce Seniors choice of provider pharmacies. I hope this won't happen, but it could!