Employers have an annual obligation to issue a Creditable Coverage notification to all plan participants who are Medicare eligible, including dependents and retirees. The notice informs Medicare-eligible participants whether their prescription coverage is at least as good as Medicare’s.
The written disclosure notice must be provided before October 15 to all covered Medicare-eligible individuals enrolled in a prescription drug plan. Model notices are available for download from the Centers for Medicare and Medicaid Services (CMS).
Most health plans are creditable. If you’re unsure which form to use, please check with your broker consultant. CMS has not made changes to the current model notices, which were released April 1, 2011.
Online disclosure also required
An online disclosure notice requires employers to verify whether the company’s prescription drug coverage is “creditable” or “non-creditable” as defined by CMS. This disclosure requirement must be completed no later than 60 days from the beginning of a plan year. This is an annual requirement.
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