When Mr. Shultz lost his employer group coverage, what should he prioritize to prevent penalties?

To avoid penalties when losing employer group coverage, Mr. Shultz should prioritize enrolling in a Part D plan before experiencing a 63-day break in coverage. This is crucial because if an individual goes without credible prescription drug coverage for a continuous period of 63 days or more, they may face a late enrollment penalty when they do decide to enroll in a Medicare Part D plan later. This penalty results in higher premiums, which can add additional financial burden.

In this scenario, maintaining continuous coverage through timely enrollment in Part D is essential to safeguard against such penalties. It is a proactive step that ensures he is not left without necessary prescription drug coverage and avoids the implications of a gap in his Medicare benefits.

Other options such as waiting for the next annual enrollment period would be too late, as it may not fall within the immediate timeframe required to avoid the penalty. Contacting his previous employer for continued coverage could be a valid step but is not the primary action to prevent penalties related to Part D. Similarly, switching to a Medicare Advantage plan could provide coverage, but it does not directly address the need for prescription drug coverage which is what Part D specifically manages.