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Medicare Part D Creditable Coverage Notices
The Medicare Modernization Act (MMA) requires that organizations who offer prescription drug coverage as part of their health plan policies notify all employees as to whether their prescription drug coverage is Credible coverage, meaning that on average it is expected to pay as much as the standard Medicare prescription drug coverage. The MMA requires employer groups to provide a written disclosure notice to all Medicare eligible individuals annually who are covered under its prescription drug plan, prior to October 15th each year and at various times as stated in the regulations, including to a Medicare eligible individual when he/she joins the plan. This disclosure must be provided to eligible active working individuals and their dependents, eligible COBRA individuals and their dependents, eligible disabled individuals covered under your prescription drug plan and any retirees and their dependents.
The MMA imposes a late enrollment penalty on individuals who do not maintain creditable coverage for a period of 63 days or longer following their initial enrollment period for the Medicare prescription drug benefit. Accordingly, this information is essential to an individual’s decision whether to enroll in a Medicare Part D prescription drug plan. For more information go to the Creditable Coverage Guidance Section of the CMS website found here: http://www.cms.gov/CreditableCoverage/01_Overview.asp#TopOfPage .
A Non-Creditable notice will have to be sent to any employees currently enrolled in and HSA or any other medical plan deemed to be Non-Creditable. The notices must be sent out prior to the October 15th deadline specified above. Any clients needing to know if there coverage is creditable or non-creditable can contact their dedicated Power Group account service manager.
Please contact your Power Group Representative if you have any further questions.
Save yourself some time and distribute all your compliance documents together.
CHIPRA Notices- Due annually
Notice of Exchanges- Due by October 1st, 2013
Medicare Part D Notices- Due before October 15th, 2013
Guidelines state these documents can all be mailed together to your employees. Please note each document must be staples separately for mailing. Contact your Account Manager with questions.