Don't Forget: The  Notice Deadline for Creditable Coverage is Approaching

Employers who provide prescription drug coverage are required to notify all Medicare-eligible employees about creditable or non-creditable status by October 15. With the onslaught of COBRA subsidy notices in recent months, don't let this deadline get lost in the shuffle. Individuals who do not enroll in Medicare Part D when first available, but who enroll later, pay higher premiums permanently unless they have creditable prescription drug coverage. These increased premiums apply if the individual goes at least 63 consecutive days without creditable coverage. Employers are required to provide notice each year to help employees understand whether employer-provided coverage is creditable. This year, notices are due by October 15, 2022. Determining whether coverage is creditable involves examining whether the employer's coverage is at least as good (measured actuarially) as standard Medicare Part D prescription drug coverage. Employers can provide the notice electronically and there is no need to conduct a separate mailing, although the employer should take steps to ensure the notice is easy to find. 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. : Q 355.