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. The MMA also requires reporting to the Center for Medicare and Medicaid Services about the drug coverage.
A written notice must be sent to Medicare eligible individuals letting them know if the employer’s prescription drug coverage is expected to pay on average as much as the standard Medicare prescription coverage. This notice must be distributed by October 15 and at certain other times throughout the year.
In addition to the written notice, an employer that offers prescription drug coverage must 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 and information about Medicare-eligible participants. The disclosure must be completed each year by employer-sponsored group health plans no later than 60 days after the beginning of the plan year. Employers with calendar year plans must complete the online disclosure statement by March 1, 2022.
A link to the disclosure statement may be accessed by clicking here.