10 Oct Reminder to Distribute Creditable Coverage Notice
Medicare Part D, the Medicare prescription drug program, imposes a higher premium on beneficiaries who delay enrollment in Part D after initial eligibility unless they have employer-provided coverage that is creditable (meaning equal to or better than coverage provided under Part D).
Employers that provide prescription drug benefits are required to notify Medicare eligible individuals annually as to whether the employer provided benefit is creditable or non-creditable so that these individuals can decide whether or not to delay Part D enrollment.
This notification must be provided prior to October 15th each year.
Notice should be sent to all Part D-eligible participants. This includes active employees, COBRA qualified beneficiaries, spouses, and other dependents of the employee covered by the plan. In many cases, the employer will not know whether an individual is Medicare eligible or not. Therefore, employers may wish to provide the notice to all plan participants (including COBRA qualified beneficiaries) to ensure compliance with the notification requirements.