Medicare Part D Explained

We break from health care reform briefly to give a timely update regarding Medicare. If your company has anyone enrolled in the group health plan and enrolled in Medicare, you need to be aware of Part D; the drug coverage portion of Medicare. Each year, Medicare determines the level of drug coverage it requires its enrollees to have. Coverage that meets the requirement is called Creditable drug coverage. Using the Medicare standard, each employer group health plan is supposed to calculate whether or not its drug coverage provides Creditable or Non-Creditable drug coverage. You don’t have to do the calculation, though. Part of our job is to ask your carrier or TPA to make the calculation on behalf of your plan.

If the group health plan provides Creditable coverage, Medicare enrollees don’t have to take any action. If, however, the group health plan provides Non-Creditable coverage, Medicare enrollees must buy a Part D drug plan or pay a premium penalty in the future. Employees that must buy a Part D drug plan can find and enroll in one at www.medicare.gov. Open enrollment for January 1, 2011 runs from November 15 through December 31.

 

If you have any questions regarding Medicare-eligible employees, please contact Linda Stuart, our Director of Compliance, at (317)218-1537 or lstuart@firstpersonadvisors.com. Thank you and have a great week!