FROM INDEPENDENCE: Each year, the Centers for Medicare & Medicaid Services (CMS) requires plans that offer prescription drug coverage to their Medicare‑eligible employees, retirees, and dependents to notify them by October 15 as to whether that coverage is “creditable” or “non‑creditable.”
| What customers must do |
| Customers must take the following steps to comply with this requirement: |
| Review the materials provided to determine whether their prescription drug coverage is creditable or non‑creditable. Disclose to their Medicare‑eligible members (employees and their dependents) whether their prescription drug coverage is creditable or non‑creditable prior to the Medicare Part D Annual Election period, running from October 15 through December 7 of this year and at other times during the future. Notify CMS as to whether their prescription drug coverage qualifies as creditable or non‑creditable. Visit the CMS website for further information on creditable coverage and a copy of the model creditable/non‑creditable disclosure letters |
| Note: Medicare beneficiaries who are not covered under creditable prescription drug coverage and who chose not to enroll in a Medicare Part D drug plan when they first became eligible for Medicare or during the initial enrollment period will likely pay a higher premium permanently if they subsequently enroll in the Medicare Part D drug program because the premium is increased by one percent for each month without creditable coverage. |
| Communications to group customers |
| Before the end of the month, we (IBC) will send letters to small and large groups as a reminder of the requirement to contact Medicare‑eligible members regarding the creditability status of their prescription coverage. All 2022 and 2023 Qualified Health Plans for small groups are creditable. All 2022 and 2023 standard large group plans are creditable. A chart is included that shows the cost‑sharing of our 2023 standard large group prescription drug plans. |
| Communications to individual consumer members |
| We (IBC) are also sending a letter to our individual members regarding the creditability status of their prescription coverage if they are eligible for Medicare. Individual members who have opted in to digital communications will receive the letter by email. All 2022 and 2023 individual consumer plans are creditable. |
Please contact your Total Benefit Solutions, Inc health insurance specialist at (215)355-2121 if you have any additional questions or concerns regarding this notice.