October Deadline for Creditable Coverage Notices Fast Approaching, September 20, 2019

Eligible Individuals who do not enroll in Medicare Part D when first available, but who enroll later, are required to pay higher premiums permanently unless they have creditable prescription drug coverage (higher premiums kick in if the individual goes at least 63 consecutive days without creditable coverage). Employers are required to provide notice each year as to whether employer-provided coverage is creditable--this year, notices are due by October 14, 2019. Whether coverage is creditable is based upon whether the employer's coverage is at least as good (measured actuarially) as standard Medicare Part D prescription drug coverage. The requirement to provide creditable coverage notices applies to insured and self-funded plans and does not vary based upon plan or employer size or grandfathered status. Creditable coverage notice must also be given if creditable status changes or upon the individual's request. For more information on the creditable coverage requirement, visit Tax Facts Online.