Client Alert from the Labor and Employment Group - June 2011
New Notice Deadline,
Model Notices for Medicare Part D
By Jeremy J. Sharp
In the 2011 benefit election period this fall, employers who sponsor medical plans will have to provide the annual notice of creditable/non-creditable coverage earlier than in prior years and use new model notices from the Centers for Medicare and Medicaid Services (CMS). The deadline for these notices has been moved up to October 14th (previously November 14th).
Employer-provided medical plans that include prescription drug coverage are required to provide annual notices of creditable/non-creditable coverage to Medicare-eligible participants. This includes active employees and dependents, retirees and their dependents (if the plan covers retirees) and COBRA beneficiaries. The notice informs the participant whether or not the prescription drug coverage under the plan is "creditable coverage." Coverage is creditable if it is expected to pay as much as the standard Medicare Part D prescription drug plan.
Participants who do not maintain creditable coverage for a period of 63 days or longer after they become eligible to enroll in Medicare Part D are subject to a late enrollment penalty and so, whether the employer's coverage is creditable or not affects a participant's decision to enroll in Medicare Part D. To comply with the 2011 change in Medicare Part D annual open enrollment, which now extends from October 15th to December 7th (previously November 15th through December 31st), employers must provide their notice of creditable/non-creditable coverage to Medicare-eligible participants by October 15th and use new model notices provided on the CMS website:
Model Individual Creditable Coverage Disclosure Notice Language
Model Non-Creditable Coverage Disclosure Notice Language |
