The Centers for Medicare and Medicaid Services (CMS) requires all employers that offer prescription drug coverage to file an annual statement about the coverage. The filing is required by all employers, regardless of size. Employers with calendar year plans that provide prescription drug coverage to their employees must remember to file the online statement by March 1.
The filing is to let CMS know if the drug coverage offered is as good as Medicare Part D prescription drug coverage. Medicare Part D beneficiaries (those who are age 65 or older or otherwise eligible for Medicare) can receive prescription drug coverage under Medicare Part D if they enroll for coverage within certain time frames. Individuals with prescription drug coverage through their employer may not be subject to a late enrollment penalty if that coverage is "creditable," which means it is at least as good as coverage available under Medicare Part D. Employers must inform their employees each year if the employer-provided prescription drug coverage is creditable or non-creditable.
In addition to the required notice to employees, employers must disclose the status of their prescription drug coverage to CMS. The disclosure must be made to CMS on an annual basis, within 60 days of the start of the plan year, within 30 days after termination of a prescription drug plan, and within 30 days after any change in the status of creditability of coverage.
The form is simple to complete and can be accessed online here.
