Employers are required to send out by October 15 a letter to all known employees who are Medicare entitled or who have covered dependents who are Medicare entitled. Since disabled individuals under age 65 can have Medicare as well, many employers send out the applicable letters to all employees who have covered dependents unless it is known that those dependents are not disabled. There are two letters that can apply. One is for those cases where the current medical coverage for the individual is deemed to provide prescription drug coverage that is “creditable” (which means it is expected to provide coverage comparable to or greater than the Medicare Part D prescription coverage) and a second letter where the current prescription drug coverage is not deemed creditable. Most traditional HMO and PPO plans have “creditable” coverage, but some do not, and many High Deductible Health Plans (for Health Savings Accounts) do not have creditable coverage.

We are happy to talk to our clients about whether their existing coverage is deemed creditable or not. In addition, employers annually need to update the Medicare Part D status of their plans with the CMS (Centers for Medicare & Medicaid Services) at the website:

https://www.cms.hhs.gov/CreditableCoverage/45_CCDisclosureForm.asp

We are happy to help with that as well.

Listed below are the two sample Medicare Part D letters:

• Medicare Part D Creditable
• Medicare Part D Non-Creditable