Employers must file drug plan
disclosures with Medicare/Medicaid
The Centers for Medicare and Medicaid Services Entities – part of the U.S. Department of Health and Human Services – has notified employers that have group health plans that include prescription drug coverage to Medicare Part D eligible individuals that they must disclose to CMS whether the coverage is “creditable prescription drug coverage.”
The Creditable Coverage Disclosure Form (Form CMS-10198) is available online at the CMS Creditable Coverage Web Page. Employers must submit the disclosure annually, within 60 days of the beginning of a plan year and within 30 days of any change occurs that affects whether the drug coverage is creditable, such as termination of the prescription drug plan.
“In brief, employers who provide drug coverage must provide written confirmation to Medicare beneficiaries notifying them whether their drug plan meets the minimum criteria established by CMS,” said Bonnie Pang, Benefit Consulting Manager for the Atlas Insurance Agency. “The notice must be sent annually no later than Nov. 14. Employers must then provide confirmation to CMS to confirm that the notice was distributed.
“Because a Medicare beneficiary could be an employee, covered spouse or dependent, we advise clients to send the notice to the employee’s home,” she said. “The Medicare beneficiary should keep this notice on file as proof that they were enrolled in a qualified drug plan. In the event the beneficiary enrolls in Medicare after their 65th birthday they will not incur a penalty.”
Additional information is available on the CMS website or contact Pang at (808) 533-8651 or bpang@atlasinsurance.com.
