HR ALERT: Time for Medicare Part D Notice of Creditable Coverage
Yes, folks, it is that time of year again. No, we aren’t talking about the World Seriesâ€”although that’s big news too! We are talking about the time of year to provide employees with their Medicare Part D creditable coverage notice.
Here’s some great information from hireVision’s own Kelly Coblentz, PHR,Â General Manager, HR and Hiring Services:
This is just a friendly reminder to all our clients and friends to make sure they have distributed the Notice of Creditable Coverage required under Medicare Part D, which informs your employees and their dependents whether the prescription drug coverage offered under your health plan constitutes creditable or non-creditable coverage.Â Your health care provider should be able to confirm whether the coverage is creditable or not.
Typically, employers distribute this notice with their open enrollment materials, if they have a 1/1 renewal. Those employers who sponsor a health plan offering prescription drug benefits must provide an annual notice to all Medicare-eligible participants, which explains whether the prescription drug benefits offered under the plan are at least as good as the benefits offered under the Medicare Part D plan. The only employers exempt from this notice requirement are those that establish their own Part D plan or who contract with a Part D plan.
The Notice of Creditable Coverage must be provided:
*Â Â Â Â Â Â at least once a year before Nov. 15 (the start of the annual Medicare Part D enrollment period).
*Â Â Â Â Â Â whenever a Medicare-eligible employee enrolls in your health plan.
*Â Â Â Â Â Â whenever there is a change in the creditable or non-creditable status of your health plan’s prescription drug coverage.
*Â Â Â Â Â Â whenever an individual requests the notice.
Even if an employee may not be Medicare eligible, it is sometimes difficult to determine the status of their dependents.Â Therefore, it is recommended to supply this to all employees enrolled in the health plan.Â Additionally, employers must file a disclosure form with Center for Medicaid and Medicare Services (CMS) prior to March 1, 2011.
Click here for a generic template (.doc) containing the model language required for this notice.*Â The notice should be modified with your companyâ€™s personal information and whether your plan is creditable or not.
You can check out the following link to CMS for any additional information about this requirement:
Want to know more about how hireVision can help you ensure that your company stays in compliance with this and other government requirements? Contact us.