Employers are required to provide a notice of creditable or non-creditable coverage, as applicable, to anyone newly eligible to enroll in the employer’s prescription drug coverage and to all eligible employees each year within the past 12 months before October 15. If the notices are properly included in the employer’s new hire and open enrollment materials (with the required first-page disclaimer if bundled into other materials), this can satisfy the requirement to provide the notice annually before October 15 so that a separate distribution in the fall is not necessary.
Below is an example of what the first-page disclaimer in 14-point font might look like when the notice is bundled into other materials (such as in an open enrollment benefit guide or separate annual routine notices packet):
As a reminder, creditability standards are changing, so it is realistic that a creditable plan may lose creditability in the near future. If a plan loses creditable status, provide employees as much advance notice as possible so they can decide whether to take advantage of the Part D annual open enrollment period that runs from October 15 through December 7 each year. If there is a change in a plan’s creditable status, CMS should also be notified within 30 days via the CMS Online Form (contrasting with the normal 60 day window required at the start of each new plan year).
COMMENTS