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Medicare Part D Creditable Coverage Notices Due Prior to Oct. 15th

In preparation for the Medicare fall open enrollment period, employers sponsoring group health plans that include prescription drug coverage are required to notify all Medicare-eligible individuals whether such coverage is creditable. Creditable coverage means that the coverage is expected to pay, on average, as much as the standard Medicare prescription drug coverage.

This written disclosure notice must be provided annually prior to October 15th, and at various other times as required under the law, to the following individuals:

Medicare-eligible active working individuals and their dependents (including a Medicare-eligible individual when he or she joins the plan);

    • Medicare-eligible COBRA individuals and their dependents;
    • Medicare-eligible disabled individuals covered under an employer's prescription drug plan; and
    • Any retirees and their dependents.

Model notices are available from the Centers for Medicare & Medicaid Services (CMS). Additionally, employers are required to complete an online disclosure to CMS to report the creditable coverage status of their prescription drug plans. This disclosure is also required annually, no later than 60 days from the beginning of a plan year, and at certain other times.

If you have questions regarding this subject or other aspects of your benefit plans, please contact a team member of Summit Benefit Solutions.

Health Care Reform Updates provided by:

Summit Financial Corporation
7 New England Executive Park, Burlington, MA, 01803
(781) 229-9500

Please Note: The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a 'covered opinion' or other written tax advice and should not be relied upon for any purpose other than its intended purpose.

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