Creditable Coverage Disclosure Notice

Creditable Coverage Guidance and Model Disclosure Notice – Employers must send out before November 15th!

We are quickly approaching the Annual Enrollment Period (AEP) for those employees and or dependents who are eligible for Medicare.  The Annual Enrollment Period for Medicare folks is very much like your AEP for group health benefits – you get one annual opportunity to make changes in your covered status. The AEP for Medicare beneficiaries is November 15th-December 31st.   The government is now requiring that all employers provide an annual notice to their employees explaining a Medicare beneficiary’s rights under AEP with respect to Medicare Part D. Part D was passed in 2006 and provides each Medicare beneficiary with Prescription Drug Coverage.

For any employee and/or dependent currently covered under your group health plan, the employee could opt out of their group coverage and enroll in Medicare Part D.  In general, we don’t recommend this option since your current group plan is considered creditable coverage- as good or better than Medicare.  Upon retirement or termination of employment, we then recommend that an employee and/or dependent review their Medicare options and become educated on the 4 parts of Medicare coverage:  Part A (hospitalization coverage), Part B ( physician services), Part C (Medicare Advantage), Part D ( Prescription Drugs).

The attached model notice should be amended for your business.  Each section titled [Insert Name of Entity] should be changed to reflect your business. We have highlighted these in RED for you so that you can easily identify them and replace them with the correct business information. There is also a section to insert your name and contact information if an employee has questions.  Please modify the letter and send to all employees.  Why should all employees receive the letter?  While most employees are under 65 and the law is not applicable, we never know when a dependent spouse regardless of age is eligible for Medicare.  Yes, you will receive a few phone calls questioning why the letter is applicable but the government requires the letter to be sent to all employees via email or a paper copy.

For any employee and/or dependent who is eligible for Medicare, we encourage them to contact our office for any additional information.  Our office routinely offers counsel for Medicare beneficiaries, which is another value-added service from Muneris.

Thanks again for your business and do not hesitate to all with any questions.

Burman S. Clark

Burman S. Clark, RHU, CSA is the President of Muneris Benefits and a licensed insurance broker and consultant. His independent practice and focuses on employee benefits, individual life, disability, medical, and senior products. Burman has traveled extensively and provided guidance to large employer associations with regards to the Affordable Care Act.