All group health plan sponsors are required to disclose to any employee or dependent who is eligible for Medicare Part D if their prescription drug coverage is credible (which means it provides at least as much coverage as the Medicare Part D standard plan). They also must disclose to the Centers for Medicare and Medicaid Services.

This must be done by October 14, 2017, since annual enrollment for Medicare Part D begins October 15. This disclosure is required whether your group coverage is primary or secondary to Medicare.

The notice obligation is not limited to retirees and their dependents, but also includes Medicare-eligible active employees and their dependents and Medicare-eligible COBRA participants and their dependents. To make sure you are covered, many groups provide this disclosure notice to all plan participants.

Medicare beneficiaries who are not covered by creditable prescription drug coverage and who choose not to enroll in Medicare Part D when first eligible will likely pay higher premiums if they enroll at a later date. Thus, although there are no specific penalties associated with this notice requirement, failing to provide the notice may trigger adverse employee relations issues.

If you have not yet provided this notification, please contact us ASAP so we can provide you with the proper paperwork.