All employers who provide
health insurance coverage to their employees must provide a notice of Credible
Coverage to all Medicare eligible employees.
The notice is to inform these employees the prescription drug benefit that
is provided through the company’s health insurance plan is equivalent to or
superior to the Standard Medicare Part D plan.
If a company’s prescription drug plan does not meet the credible
coverage requirements, employers must still provide a notice to the eligible
employees stating their plan does not meet this minimum requirement. Employers must provide each Medicare eligible
employee with this notice once a year.
The notice must also be provided to the dependents of the eligible
Medicare employee. The Centers for
Medicare & Medicaid Services has provided employers with a template notice
to use as guidance when generating these notices. Please click here to view the sample
notice provided by the Centers of Medicare & Medicaid Services for credible
coverage. If your company’s prescription
drug benefit does not meet the minimum credible coverage, please click here for the Non-Credible
Coverage Model Notice.
The last requirement
employers are responsible for is to complete an online questionnaire provided
by the Centers for Medicare & Medicaid Services. This questionnaire will inform CMS if your
company’s prescription drug benefit is credible or non-credible. Employers should complete the online
questionnaire roughly 60 days before their health insurance plan renews or is
effective. The questionnaire should also
be completed if the plan is terminated or if there is any status change. For these situations, the questionnaire
should be completed in 30 days after the termination or status change. Please click here
to view the questionnaire employers are required to complete.
For more information
regarding the distribution & completion of the Medicare Part D Credible
Coverage Notice, please contact our office.
Thank you.
