The Medicare Modernization Act requires employers with health plans that include prescription drug coverage to notify Medicare-eligible participants if the drug coverage is “creditable” or not. This means the employer must let participants know if the employer’s prescription drug coverage is expected to pay on average as much as the standard Medicare prescription coverage.
The MMA implemented two disclosure requirements with respect to prescription drug coverage.
The first is to provide a written notice to Medicare eligible individuals. This notice must be distributed by October 15 each year, and at certain other times throughout the year.
The second is to file a disclosure statement with the Centers for Medicare & Medicaid Services. The CMS disclosure is an online filing through which employers report the creditable coverage status of their prescription drug plan. The disclosure must be completed each year no later than 60 days from the beginning of the plan year, and is required by employer-sponsored group health plans. For employers with calendar year plans, this means the online disclosure must be completed by March 1, 2017.
Click here for a link to information about filing with CMS and access to the online disclosure form.
