Employers who sponsor group health plans that cover any prescription drugs generally must disclose whether the plan provides creditable or non-creditable prescription drug coverage to Centers for Medicare and Medicaid Services (CMS) within 60 days of the start of a new plan year. If your plan year begins on January 1, you must file your disclosure with CMS by March 1.
Filing is done electronically using the CMS Website. Instructions also are available there.
This filing requirement applies to health plans that cover anyone eligible for the Medicare Part D prescription drug program, whether as an active employee, spouse, dependent or retiree. There are limited exemptions for plans that contract with a Medicare Part D plan or directly with Medicare to become a Part D plan. Most employer-sponsored plans do not fall within these limited exceptions.
This disclosure is in addition to the Notice of Creditable (or Non-creditable) Coverage that you provide annually to Medicare-eligible participants. Remember also that if, after filing this disclosure, you terminate prescription drug coverage or change from creditable to non-creditable coverage (or vice versa), you must file a new electronic disclosure within 30 days and provide an updated notice to participants in your plan.
If you have any questions about the creditable coverage disclosure to CMS, or about Medicare Part D, please contact Norbert Kugele or any other member of Warner’s Employee Benefits Practice Group.
