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| The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 added a new prescription drug program to Medicare. The new Medicare prescription drug coverage, known as Medicare Part D, became available January 1, 2006. | ||
| Employers and other plan sponsors that provide prescription drug coverage to Medicare beneficiaries are required to disclose whether the prescription drug coverage they provide to Medicare-eligible individuals is “creditable” or at least as good as the prescription drug coverage provided under Medicare Part D. Disclosure is required whether the coverage is primary or secondary to Medicare. The first disclosure to Medicare eligibles was required prior to the first annual open enrollment period which began November 15, 2005. An additional disclosure is required annually, prior to the Medicare annual open enrollment period each year. The plan sponsor must also make an online disclosure to the Centers for Medicare and Medicaid (CMS) annually and upon making any future change in the plan that may affect its “creditable” status. | ||
| Employers/Plan sponsors that provide prescription drug coverage to retirees may be eligible for a federal subsidy for each retiree that remains covered under their prescription drug plan instead of enrolling in a Medicare Part D plan. Application for the subsidy must be made online at least 90 days before the beginning of the plan year. | ||
| Genworth Life and Health Insurance Company provides each fully insured medical customer with an evaluation of the prescription drug component of its medical plan when the coverage is first issued, if a change is made to the medical plan, and then at each renewal. | ||
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For more information, here are some helpful websites that contain guidance documents relating to Creditable Coverage requirements for employer and union-sponsored plans and model notice documents: http://www.cms.hhs.gov/CreditableCoverage/. | ||
| Model Creditable Coverage notice from CMS for use after May 15, 2006: 042106-Cred Coverage- Bene.doc Model non-creditable coverage notice from CMS for use after May 15, 2006: 042106-Non Cred Coverage- Bene1.doc Or you can customize this version of the creditable coverage notice: 041206-Model Personalized-CCBene.doc Medicare Publication 11107 Quick Facts about Medicare’s New Coverage for Prescription Drugs for People who have Prescription Coverage from an Employer or Unionhttp://www.medicare.gov/Publications/Pubs/pdf/11107.pdfGeneral information for employers/plan sponsorshttp://www.cms.hhs.gov/EmplUnionPlanSponsorInfo/Retiree drug subsidy informationhttp://www.cms.hhs.gov/EmployerRetireeDrugSubsid/01_Overview.asphttp://rds.cms.hhs.gov/ Required notification to CMS:http://www.cms.hhs.gov/medicarereform/Credcovrg.asp | ||
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