Purpose:
- Within 60 days of the start of each new medical plan year, ALL employers must notify the Centers for Medicare and Medicaid Services (CMS) whether their prescription drug plan options are creditable and/or non-creditable.
- This 60-day deadline is reduced to 30 days if prescription drug creditability changes or the plan terminates. So, calendar year plans must report by March 2 (or by January 30 if creditability changed or the plan terminated).
Applies To:
- Employers of any size sponsoring a fully insured, self-insured, or level-funded medical plan with prescription drug coverage.
- This appears to include HRAs that include reimbursement of prescription drug costs, and ICHRAs that are not just reimbursing insurance premiums but also reimburse prescription drug costs.
Additional Information:
Employers must submit their creditable/non-creditable status via the CMS Creditable/Non-Creditable web form.
Penalties for Non-Compliance:
There is no specific penalty to the employer for not submitting this reporting to CMS. However, it is easy to do and takes very little time, so demonstrating good faith compliance is encouraged.
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