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Medicare Part D Open Enrollment is almost here.  Have you sent out your Medicare Part D notices?  This year, Medicare Part D Open Enrollment will run from October 15th to November 7th.  Any employer that offers prescription drug coverage is required to provide notices stating whether it is creditable or not before that open enrollment period begins.  This means all notices must be sent out by October 14th.

Any employer that provides a prescription drug benefit must deliver this notice by the October 14th deadline, regardless of whether the plan is insured or self-funded, the plan size, the employer size or ACA grandfathered status.  The notice must also be provided regardless of whether the prescription benefit is separate coverage or part of another plan, such as a medical plan.

Coverage for prescription drugs is considered creditable when it provides the same level of coverage that a Medicare Part D plan would provide.  If a prescription drug benefit is not creditable, it provides a lower level of coverage than a Medicare Part D plan.  Notifying qualifying individuals of the status of their current drug benefit will let them know if they need to shop for different prescription drug coverage during the 24-day window.

Notices are required to go out to any retired employees and their dependents who participate in their employer sponsored retiree plan.  They must also be sent to active employees and dependents as well as COBRA enrollees and their dependents.

Notices may be provided in several different ways.  They can be distributed with annual open enrollment materials, through separate mailings, or electronically, such as through email.  It can be challenging to identify which individuals are retired, Medicare-eligible active employees or Medicare-eligible COBRA participants. It is our recommendation to provide a blanket notice to all employees and COBRA participants. Sending to all potentially eligibile members ensures that all notice requirements have been met.

Berg Andonian Can Help

Is your company looking for a new or different prescription drug benefit? Let us help. For more than 20 years, Berg Andonian has been working with groups to design customized and affordable health plans.  Using your unique desires and priorities, we create healthcare solutions that are both attractive and cost-effective for you and your employees.   Call us today so we can design a plan that is the right fit for your company.

Published October 8, 2018.