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. An employer’s prescription drug coverage is creditable if it 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 requirement is to provide a written notice to Medicare eligible individuals. This notice must be distributed by October 15 and at certain other times throughout the year.
The second requirement 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 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. The CMS online filing for calendar year plans is due soon.
Click here for a link to information about filing with CMS and access to the online disclosure form.