In preparation for the fall open-enrollment period, employers sponsoring group health plans that include prescription drug coverage are required to notify all Medicare-eligible individuals whether such coverage is creditable. This means the coverage is expected to pay, on average, as much as the standard Medicare prescription drug coverage.
Contact your agent or insurance company to find out if your group health plan is creditable or non-creditable.
Written disclosure to individuals
A written disclosure notice must be provided annually by Oct. 14, and at various other times as required under the law, to the following individuals:
- Medicare-eligible, active working individuals and their dependents (including a Medicare-eligible individual when he or she joins the plan)
- Medicare-eligible COBRA individuals and their dependents
- Medicare-eligible disabled individuals covered under an employer’s prescription drug plan
- Retirees and their dependents
Model notices are available from the Centers for Medicare and Medicaid Services (CMS).
Online disclosure to CMS required
Additionally, employers are required to complete an online disclosure to CMS to report the creditable coverage status of their prescription drug plans. This disclosure is also required annually, no later than 60 days from the beginning of a plan year, and at certain other times.
Source: HR 360, Inc.