Medicare Part D Annual Notices Deadline Changed to Oct. 15

2011-10

Employers who sponsor health plans that provide prescription drug coverage must provide an annual notice to Medicare-eligible participants describing whether their plan's prescription drug coverage is considered "creditable."   The notice must be given to participants annually before the beginning of the Medicare enrollment period.  The Patient Protection and Affordable Care Act changed the beginning date of the Medicare Part D enrollment period from November 15 to Oct. 15, beginning with the 2011 enrollment period.  A plan's prescription drug coverage is considered creditable if it is expected to pay as much as the standard Medicare prescription drug program. 

This notice is important because Medicare-eligible individuals who fail to enroll in Medicare Part D prescription drug coverage and who do not maintain creditable coverage for at least 63 days will become subject to a late enrollment penalty when they enroll in Medicare Part D coverage. 

This reminder is important because in the past year, plan sponsors distributed the annual notice of creditable or non-creditable coverage by Nov. 15.  This year it is due one month earlier, on Oct. 15.  Plan sponsors have the responsibility to update their notices of creditable or non-creditable coverage to indicate the new enrollment period and to distribute the notices by the deadline, Oct. 15.