Medicare Part D – 2009 Notification
It’s that time of year of again where employers must notify their employees whether or not the group prescription plan offered under the employer’s group health plan is equal to or better than that provided by Medicare Part D. If the employer’s prescription plan is equal to or better than Medicare Part D, then it is considered “creditable.” If it is not, then it is “non-creditable.”
Effective 2006, prescription drug coverage became available to Medicare eligible individuals. An individual can join a Medicare Drug Plan when they first become eligible (typically the first day of the month on you turn 65) and each year thereafter between November 15th and December 31st.
If an employer’s prescription plan is non-creditable, an employee may want to consider joining a Medicare Drug Plan, which is why all employers must notify their employees each year by November 15th, whether or not the prescription plan is creditable or non-creditable.
Generally, if an employer’s prescription plan has a co-pay without an annual maximum, the coverage is more than likely creditable. If an employer offers a high deductible health plan to its employees, it is most likely non-creditable. Further information can be found on the medicare.gov website.
Jill F. Rosenfeld, Esq.