Another Employee Benefits Compliance Requirement – Deadline October 14, 2014!

       

Medicare Part D Creditable Coverage

Plans that provide prescription drug coverage must give all employees, retirees, and dependents who are or who may become eligible for Medicare Part D during next 12 months a notice explaining whether the prescription drug coverage provided by the group health plan is "creditable" or "non-creditable" coverage for purposes of Medicare. The notice must be given each year before the start of open enrollment for Medicare Part D prescription drug coverage -- the notice is due each year by October 14. Due to difficulty identifying dependents who may be Medicare-eligible, many employers provide the notice to all employees.

 

The Centers for Medicare & Medicaid Services (CMS) also requires plan sponsors to provide notice of their creditable-coverage status to Part D-eligible members before an individual's initial opportunity to enroll in Part D (this is generally satisfied by the annual notice), before the effective date of coverage for any Medicare-eligible individual who joins the employer's plan, if the plan's prescription drug coverage ends or its creditable coverage status changes, and upon an individual's request.

 

Whether coverage is creditable matters because a penalty in the form of a higher premium will apply to individuals who do not elect Medicare Part D or other creditable prescription drug coverage when first eligible if they later elect drug coverage. Coverage is considered creditable if it is expected to cover, on average, as much as the standard Medicare Part D prescription drug plan.

 

The CIOMA Employee Benefits Program includes solutions for maintaining benefits-related compliance. Contact the team at Maniaci Insurance Services at 866-541-4824 or mail@maniaciinsurance.com for more information.