Medicare Part D – Creditable Coverage

As in previous years, employers sponsoring a group health plan with prescription drug benefits must notify their Medicare-eligible employees as to whether the drug coverage provided is “creditable” or “non-creditable.”

Here are the details:

  • The term “creditable” means equal or better coverage than that provided under Medicare Part D.
  • Medicare Part D imposes a higher premium on beneficiaries who enroll after initial eligibility unless they have creditable employer-provided coverage.
  • Employers providing prescription drug benefits are required to notify Medicare-eligible individuals annually as to the creditable or non-creditable status of their benefit so that those individuals may decide whether or not to delay enrollment in Part D.
  • Employers must provide the same annual notification to the Centers for Medicare and Medicaid Services (CMS).
  • Notification must be made prior to October 15th each year. Because the 15th falls on a Sunday in 2017, employers have an extra day, with a deadline of Monday, October 16th.
  • Sample notification letters are provided on the website. Click here.


Questions about Medicare Part D, creditable vs. non-creditable coverage or other benefits issues? Contact Consolidated Insurance