Employers should be aware of the upcoming October 15 deadline for issuing a creditable or non-creditable coverage notice to their plan participants, including dependents and retirees, who are eligible for Medicare. The notice alerts Medicare-eligible participants how their prescription drug coverage compares to Medicare. If a prescription drug plan supplies benefits that are less than what Medicare offers, Medicare-eligible plan members should be informed their coverage is non-creditable. Individuals with non-creditable coverage are recommended to enroll in a Medicare Part D drug plan.
An online disclosure that verifies whether an employer’s prescription drug coverage is creditable or non-creditable is also required annually. Employers have until up to 60 days after the beginning of their plan year to complete their submissions.