---
title: Account-based plans could escape creditable coverage notice requirements
description: Proposed CMS rule may ease reporting requirements for account-based health plans, reducing administrative burdens for employers.
image: https://insights.bukaty.com/hubfs/AdobeStock_61211215_reportingrequirements.jpg
---

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![Account-based plans could escape creditable coverage notice requirements](https://insights.bukaty.com/hs-fs/hubfs/AdobeStock_61211215_reportingrequirements.jpg?width=600&height=400&name=AdobeStock_61211215_reportingrequirements.jpg "Account-based plans could escape creditable coverage notice requirements")

# Account-based plans could escape creditable coverage notice requirements

Authored by  Bukaty Companies on February 9, 2026

Each year plan sponsors of group health plans are required to [notify](https://insights.bukaty.com/bulletins/creditable-coverage-notices-due-october-15)<https://insights.bukaty.com/bulletins/creditable-coverage-notices-due-october-15>Medicare-eligible plan participants if their prescription drug coverage is at least as good as Medicare coverage. A [proposed rule](https://www.federalregister.gov/documents/2025/11/28/2025-21456/medicare-program-contract-year-2027-policy-and-technical-changes-to-the-medicare-advantage-program#p-1025) issued by the Centers for Medicare & Medicaid Services (CMS) seeks to ease the reporting requirements for employers sponsoring Health Reimbursement Arrangements (HRAs), Individual Coverage Health Reimbursement Arrangements (ICHRAs) and other [account-based medical plans](https://bukaty.com/benefit-administration).

The proposed rule recognizes that while account-based plans are considered group health plans, they don’t directly provide prescription drug coverage. That distinction makes it difficult to compare against the actuarial value of a traditional prescription drug plan. CMS acknowledges that “while account-based plans generally only provide a financial benefit to employees, for example, tax savings, prescription drug coverage conveys numerous benefits to beneficiaries."

The CMS proposed rule aligns with President Trump’s [Unleashing Prosperity through Deregulation Executive Order](https://www.whitehouse.gov/presidential-actions/2025/01/unleashing-prosperity-through-deregulation/) and reflects the administration's efforts to reduce administrative burdens on employers and plan sponsors.

Bukaty Companies uniquely understands plan sponsor compliance responsibilities. Let us draft a compliance game plan for your business. Our team can review current practices, identify plan-specific requirements and outline a year-round to-do list.

 Blog Category: [Compliance](https://insights.bukaty.com/topic/compliance)

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