Legal Alert: Reminder - Medicare Part D Notices Must be Distributed by October 15
Reminder - Medicare Part D Notices Must be Distributed by October 15
by Denise L. Atwood and Eva N. Kerr
Employers who sponsor health plans that provide prescription drug coverage must provide an annual notice to Medicare-eligible participants regarding whether the plan’s prescription drug coverage is “creditable.” A plan’s prescription drug coverage is considered creditable if it is expected to pay on average as much as the standard Medicare prescription drug coverage. Medicare Part D-eligible individuals who fail to enroll in Medicare Part D prescription drug coverage and who do not maintain creditable coverage for a period of 63 days or longer will be subject to a late enrollment penalty when they eventually enroll in Medicare Part D coverage. As a result, knowing whether or not a plan’s prescription drug coverage is creditable is essential to an individual’s decision whether to enroll in a Medicare Part D prescription drug plan.