Medicare Part D Creditable Coverage Notice

Employers must provide a creditable or non-creditable coverage notice at least once a year to all Medicare eligible individuals who are covered under, or who apply for, the group’s prescription drug plan. This notice must be provided to both active employees and retirees who are eligible for Medicare Part D.

The Medicare Modernization Act mandates that all employers offering prescription drug coverage disclose to all Medicare eligible individuals with prescription drug coverage under the plan whether the coverage is “creditable”. This information is essential to the Medicare eligible’s decision whether to enroll in a Medicare Part D prescription drug plan.

Employers are required by the Centers for Medicare and Medicaid Services (CMS) to provide creditable coverage at least once a year and at the following times:

• Prior to the Medicare Part D Election Period beginning Nov 15th of each year
• Prior to the individual’s initial enrollment period
• Prior to the effective date of coverage for any Medicare-eligible individual that joins your plan
• Whenever prescription drug coverage ends or changes

This notice does not need to be a separate mailing and can be included with other plan information materials either printed or electronic. Employers are required to provide this notice and to provide CMS with your plan’s creditable or non-creditable coverage status annually via online form within 60 days of the beginning of each plan year.

Please contact our office for assistance in determining if your prescription drug plan is considered creditable or non-creditable coverage or if you need a copy of the model notice for employees.

SBC Reminder…

Effective at you first open enrollment following 9/23/12, all groups will be required to distribute to all employees and their beneficiaries a copy of the Summary of Benefits & Coverage for all available health care plans. You will also be required to distribute the SBC to all new hires. Failure to distribute the SBC to employees can result in a $1000 fine per offense. Are you prepared to implement this requirement into your company?

Congrats to Myra!

Myra L. Thompson, RHU, REBC, President of Administrators Advisory Group, Inc in DeLand, FL has earned the Group Benefits Associate (GBA) professional designation from the Wharton School of the University of Pennsylvania. Candidates for the designation must complete four courses and pass a proctored exam. This designation helps professionals develop strategic skills in health care, welfare benefits, and health economics. Congratulations Myra on a job well done!

Everyone Makes Promises…

Everyone Makes Promises, AAG Delivers.

At Administrators Advisory Group, Inc., we don’t make promises. We provide information and support that result in a measurable outcome.

We only ask you to meet with us so we can determine your needs and demonstrate hands on how we can help. Once you’ve had the opportunity to evaluate our NO COST, NO OBLIGATION

demonstration of the AAG experience, you’ll immediately see the value in our resource compliance and management consulting services.

We would like the opportunity to show you how our Holistic Philosophy can benefit your company.

Corporate Office:
105 South Dexter Avenue
DeLand, FL 32720

Call today!

Toll Free: (800) 940-0034
Phone: (386) 738-1895
Fax: (386) 738-1767