Medicare Part D Annual Notice

Did You Know...   

Employers that offer prescription drug coverage must provide a creditable or non-creditable coverage disclosure notice to all Medicare Part D eligible individuals on an annual basis by October 15? Medicarepartdreminder

The Medicare Modernization Act (MMA) requires employers to notify eligible policyholders and dependents of whether or not their coverage is creditable, meaning that the coverage is expected to pay on average as much as the Medicare prescription drug coverage.

Notification is required at least once a year and at the following times:

  • Prior to an individual's initial enrollment period for Part D;
  • Prior to the effective date of coverage for any Medicare-eligible individual that joins your plan;
  • Whenever prescription drug coverage ends or changes so that it is no longer creditable or becomes creditable;
  • Prior to the Medicare Part D Annual Coordinated Election Period beginning on October 15 of each year; or
  • Upon the request of a beneficiary.

Additionally, most entities are required to complete an online disclosure form to the Centers for Medicare and Medicaid Services (CMS).  The disclosure should be completed no later than 60 days after the beginning date of the plan year, within 30 days of a prescription drug plan termination, or within 30 days of any change in creditable coverage status.  The online disclosure form can be completed at: Creditable Coverage Disclosure Form   

The MMA imposes a late enrollment penalty on individuals that do not maintain creditable coverage for 63 days or longer following their initial enrollment period for the Medicare prescription drug benefit.  Accordingly, this information is important in an individual’s decision to enroll in the Part D plan.

Creditable Coverage Model Notice Letters can be downloaded by clicking the following links:

Model Creditable Coverage Disclosure Notice
Model Non-Creditable Coverage Disclosure Notice

If you have questions or for more information, contact your HR One Consultant or call HR One's Human Resource Helpline at 1.800.457.8829.