In 2003, the Medicare Modernization Act (MMA) was signed into law. Under the MMA, plan sponsors (generally employers) of group health plans providing prescription drug coverage must provide a notice to Medicare Part D eligible individuals. The purpose of the notice is to inform these individuals of the plan’s creditable or non-creditable status, as defined in the MMA, and explain what happens to their coverage and future enrollment rights if they elect Medicare Part D.
The Benefits Brief provides an overview of Medicare Part D, the Creditable Coverage Notice requirements, determinations of creditable coverage, penalties for non-compliance, and other Centers for Medicare & Medicaid Services (CMS) reporting requirements related to Medicare Part D. Plan sponsors should review this information and prepare for delivering the Creditable Coverage notice given the upcoming fall enrollment season.
Contact your Cowden representative for more information on this or other compliance issues.