Revised Medicare Part D notices of creditable and non-creditable coverage for employers who offer prescription drug coverage have been issued by The Centers for Medicare and Medicaid Services (CMS). Creditable coverage is defined as drug coverage that is at least as good as the standard Medicare Part D benefit.
The CMS has translated these notices in Spanish. No requirements currently exist for producing notices in a foreign language. However, employers with fitting demographics should consider providing Spanish notices.
HOW DOES THIS AFFECT YOU AS AN EMPLOYER
Medicare Part D was enacted as a part of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA). Effective on January 1, 2006, Medicare Part D is a federal program that subsidizes the costs of prescription drugs for Medicare beneficiaries.
Although over 43 million Americans are eligible for Medicare Part D coverage, many continue to have drug coverage through their current employer’s group health plan. There are two annual notice requirements for all employers offering a prescription drug benefit with their healthcare plan. These are:
- A Notice of Creditable Coverage or a Notice of Non-Creditable Coverage, whichever is applicable, is required to be sent to every participant of your benefit plan by November 15th of each year and at other times.
- The Centers for Medicare and Medicaid Services (CMS) must be notified no later than 60 days after the start of your new plan year about your creditable coverage status.
WHAT SHOULD I DO NEXT?
If you are an employer offering a prescription drug benefit you will want to make sure you have the updated notices for Medicare Part D and that you have met the two annual notice requirements listed above.
Click Here for an updated CMS Creditable Coverage Notice Form
Click Here for a copy of the entire revised model notices
Click Here for more information on Medicare Part D For more information, please call Corporate Synergies at 1.866.CSG.1719 or click here to contact us today. |
