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Medicare: New compliance regulations imposed on employers.

9/22/2016

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Under the Medicare Modernization Act (MMA), written disclosure should be provided by employers who have policies that are inclusive of prescription drug coverage.  This written disclosure requirement is a means to notify Medicare of whether or not the prescription coverage is creditable coverage.  
(Creditable coverage: the coverage is expected to pay as much as the standard Medicare prescription drug coverage offered by Part D).
This written disclosure must be provided by the employer prior to October 15, 2016.  In addition, the regulations state that at various other times the notice must be provided to all:
  • Medicare eligible active working individuals and their dependents (including a Medicare eligible individual when he or she joins the plan);
  • Medicare eligible COBRA individuals and their dependents;
  • Medicare eligible disabled individuals covered under an employer’s prescription drug plan; and
  • Any retirees and their dependents.
CobraHelp provides our clients with resources such as the model notices for your use in notifying your employees, and the official guidance booklet from Centers for Medicare and Medicaid.  Click here to download model notices or other helpful documents. 
Additional Disclosure Requirement:

Employers are also required (by law) to complete the online disclosure to CMS (Centers for Medicare and Medicaid) advising as to whether or not their prescription drug plan is creditable coverage or not.  This disclosure submission is comprised of several steps via the online form on the CMS website here. 
Download Notices Here

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