It’s that time of year when the Medicare Part D Notice of Creditable Coverage must be provided to participants. As October 15th is rapidly approaching, plan sponsors need to prepare. Plan sponsors are required to provide Notice of Creditable (or Non-Creditable) Coverage to their employees and their employees' covered dependents that are Medicare-eligible. Individuals can enroll in Medicare when they first become eligible or each year during an open enrollment period from October 15th through December 7th.
What does this mean to you as an employer?
Medicare Part D is a federal program that subsidizes the costs of prescription drugs for Medicare beneficiaries. Although over 43 million Americans are eligible for Medicare Part D coverage, many continue to have drug coverage through their current employer's group health plan. As a result, Medicare eligible individuals must make a choice between the employer sponsored plan or enrolling in Medicare Part D. There are two annual notice requirements for all employers offering a prescription drug benefit with their healthcare plan. These are:
- A Notice of Creditable Coverage or a Notice of Non-Creditable Coverage, whichever is applicable, is required to be sent to every participant of your benefit plan by October 15th of each year.
- The Centers for Medicare and Medicaid Services (CMS) must be notified via an online questionnaire no later than 60 days after the start of your new plan year about your creditable coverage status.
What should I do next?
If you are an employer offering a prescription drug benefit you will want to make sure you have the updated notices for Medicare Part D and that you have met the two annual notice requirements listed above.
- CLICK HERE for a copy of the CMS Creditable Coverage Notice Form to be used for the 2013 plan year
- CLICK HERE for a copy of the CMS Non-Creditable Coverage Notice Form to be used for the 2013 plan year
- CLICK HERE for more information on how to notify CMS of your Creditability status
If you have any additional questions regarding the information within this eCommunication, please call Corporate Synergies at 1.866.CSG.1719 or CLICK HERE to contact us today.
Corporate Synergies is pleased to provide regular updates on issues affecting group benefits insurance. As an insurance broker and consultant, Corporate Synergies is proactive in monitoring federal and state legislative and regulatory activity to ensure that you stay informed. Our customers call us their "Dedicated Advocates." We work on your behalf.