12/23/2009
Some plans' Part D creditable-coverage status to change Jan. 1
Federal regulations state that employers who provide prescription medication coverage to Medicare-eligible individuals must tell those individuals whether their prescription drug coverage is creditable or non-creditable under Medicare Part D's prescription drug coverage rules. We recently determined that for some groups the creditable-coverage status has changed.
As of Jan. 1, 2010, some plans' prescription drug coverage will be re-classified as non-creditable. This change occurred because we used more recent data when performing this year's analysis of creditable-coverage status. In the future, we will perform this analysis earlier in the year so that employers can notify Medicare-eligible individuals prior to the Annual Election Period (Nov. 15 - Dec. 31).
Since the prescription drug coverage offered to those employees will change to non-creditable starting Jan. 1, they'll have a 60-day Special Election Period (SEP) for purchasing Medicare Part D prescription drug coverage. Anyone who enrolls in Medicare Part D after the SEP will have to pay a late-enrollment penalty.
Employers must notify the Centers for Medicare & Medicaid Services (CMS) of this change. Employers must do so within 30 days following the effective date of the change (Jan. 1, 2010). We have sent the employers a letter and also attached a grid outlining the details of coverage.
Read our FAQ and visit the CMS Web site to learn more about the disclosure requirements.
If you have any questions, please talk to your Asuris Sales contact.
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