Employers have an annual obligation to issue a CMS coverage notice to all Medicare-eligible plan participants, including dependents and retirees. The notice informs Medicare-eligible participants whether their prescription coverage is at least as good as Medicare’s.
The written disclosure notice must be provided before October 15 to all Medicare-eligible individuals enrolled in an employer-sponsored prescription drug plan. Model notices are available to download from the Centers for Medicare and Medicaid Services (CMS).
Download the Creditable Coverage disclosure notice.
Download the Non-creditable Coverage disclosure notice.
Most prescription drug plans are creditable. If you’re unsure which notice to use, check with your benefits consultant. CMS has not made changes to the current model notices, which were released April 1, 2011.
Online disclosure also required
An online disclosure notice requires employers to verify whether their company’s prescription drug coverage is “creditable” or “non-creditable” as defined by CMS. This disclosure requirement must be completed no later than 60 days after the beginning of a plan year. This is an annual requirement.