This is a reminder that the deadline to distribute the annual Notice of Creditable Coverage required under Medicare Part D is approaching quickly. This notice informs participants whether the prescription drug coverage offered under your organization’s health plan constitutes creditable or non-creditable coverage. Your organization must distribute the notices to individuals before October 15.
Employers who sponsor a health plan offering prescription drug benefits must provide an annual notice to all Medicare-eligible participants that explains whether the prescription drug benefits offered under the plan are at least as good as the benefits offered under the Medicare Part D plan. The only employers exempt from this requirement are those that establish their own Part D plan or contract with a Part D plan.
The Centers for Medicare and Medicaid Services (CMS) have posted forms and instructions for providing this notice. The forms were last updated in 2011. They are available, both in English and Spanish, through the following links:
Model Individual Notice of Creditable Coverage English Espanõl
Model Individual Notice of Non-Creditable Coverage English Espanõl
The Notice of Creditable Coverage must be provided:
- At least once a year before October 15 (the start of the annual Medicare Part D enrollment period);
- Whenever a Medicare-eligible employee, spouse or dependent enrolls in your health plan;
- Whenever there is a change in the creditable or non-creditable status of your health plan's prescription drug coverage; and
- Whenever an individual requests the notice.
Because it is difficult to keep track of which employees (and their spouses or dependents) are eligible for Medicare benefits, we recommend that employers make the notice a part of their new-hire enrollment and annual open enrollment materials. If distributed before October 15, this should take care of the requirements in the first two bullet points above.
Employers must also submit a Disclosure form to CMS each year, reporting whether their prescription drug coverage is creditable or non-creditable. This form must be submitted electronically within 60 days of the beginning of each plan year. For calendar year plans, the next annual reporting deadline is March 1, 2021. More information is available at the CMS Creditable Coverage web page.
If you need any assistance with Medicare Part D notifications, please contact Norbert Kugele, Stephanie Grant or any other member of Warner’s Employee Benefits/Executive Compensation Practice Group.
