Annually, Medicare Part D requires group health plan sponsors to disclose to those eligible for Medicare Part D and to the Centers for Medicare and Medicaid Services (CMS) whether the health plan’s prescription drug coverage is creditable.
The start date of the annual enrollment period for Medicare Part D is October 15, 2021. Plan sponsors must provide the annual disclosure notice to Medicare-eligible individuals before this date.
CMS has provided model disclosure notices for employers to use.
Medicare beneficiaries who are not covered by creditable prescription drug coverage and do not enroll in Medicare Part D when first eligible are at risk of paying higher premiums if they enroll later.
Failing to provide the notice may be detrimental to employees; however, there are no specific penalties associated with this notice requirement.
For more information, click here.
Questions? Contact Creative Benefits at 866-306-0200 or email us at firstname.lastname@example.org.