- Posted by Jessica Waltman
- On September 15, 2020
If your company offers prescription drug coverage as an employee benefit, then you need to give Medicare Part D creditable notices to your eligible employees, retirees, and COBRA beneficiaries, before October 15, 2020. This deadline is coming up fast, so it is time to prepare your annual coverage letter for beneficiaries and establish a system to distribute your notices.
Federal law requires employers to tell people who are eligible for both group prescription coverage and Medicare Part D about how their two prescription drug benefit options compare. Qualified individuals need to get this information every year before the Medicare annual enrollment period starts on October 15, so that they can make informed benefit decisions.
Every person who is eligible for both Medicare and the group plan needs to be informed. So, the best practice is to notify all employees and retirees qualified to participate in your group coverage plan, and all COBRA beneficiaries. That way, you will never miss a potentially Medicare-eligible dependent. Notifications can be mailed or hand-delivered to eligible employees and retirees within the next month to guarantee delivery before October 15.
If you need help, your Kistler Tiffany Benefits/OneDigital Client Executive is available to assist with evaluating the depth of your prescription drug coverage. We can also assist with drafting a notice that reflects all of your specific prescription drug plan options for eligible employees. The federal Centers for Medicare and Medicaid Services (CMS) has tools and model notices available for employers to use too, so the process is relatively quick and painless. It just needs to be done in the next few weeks!