Each year plan sponsors of group health plans are required to notify Medicare-eligible plan participants if their prescription drug coverage is at least as good as Medicare coverage. A proposed rule 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.
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 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.