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The Centers
for Medicare
and Medicaid
Services
(CMS) has
issued
revised
Medicare
Part D
notices of
creditable
and
non-creditable
coverage for
employers
who offer
prescription
drug
coverage.
Creditable
coverage
means drug
coverage
that is at
least as
good as the
standard
Medicare
Part D
benefit.
The CMS has
translated
these
notices into
Spanish. No
requirements
currently
exist for
producing
notices in a
foreign
language.
However,
employers
with fitting
demographics
may decide
to
distribute
notice in
the Spanish
language.
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.
Corporate
Synergies is
pleased to
provide
regular
updates on
issues
affecting
group
benefits
insurance.
As an
insurance
broker and
consultant,
Corporate
Synergies
monitors
federal and
state
legislative
and
regulatory
activity to
ensure that
you stay
informed.
For more
information,
please call
Corporate
Synergies at
1.866.CSG.1719
or
click here
to contact
us today.
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