If you’re an employer sponsoring a group health plan or an insured covered under your employer’s plan, it’s important to learn about Medicare Part D.
Coverage for prescription drugs became available in 2006 for everyone with Medicare. This is referred to as Medicare Part D. If you’re about to become Medicare eligible (the first of the month you turn age 65) and are still covered under your employer's health plan, you need to know some details about your plan’s prescription drug coverage in order to decide what to do about Medicare Part D.
Your health plan should be able to tell you if your prescription drug coverage is “Creditable Coverage”. This means your coverage is expected to pay benefits that are as much as standard Medicare Part D. If you have Creditable Coverage with your employer plan, you can keep that coverage and not have to pay a higher premium (a penalty) if you later decide to join a Medicare drug plan.
If your health plan’s prescription drug coverage is “Non-Creditable Coverage”, this means you will get more help with your drug costs through a Medicare drug plan. But most importantly, it means that if you decide NOT to enroll in Medicare Part D when you first become Medicare eligible, you will pay a higher premium when you do enroll. The penalty for this late enrollment goes up by at least 1% for every month that you delay enrolling under Medicare Part D.
For employers sponsoring health plans, you are required to provide all Medicare eligible employees with notice of their rights. One unique benefit Allied offers its members, is that we send these notices directly to Medicare eligible employees on our employers’ behalf.
You also are required to complete an online report for CMS (Centers for Medicare & Medicaid Services) indicating whether or not your current plan is considered creditable. This online report can be found at cms.gov.
It’s extremely important that Medicare eligible individuals and employers learn how an employer sponsored health plan impacts an individual’s Medicare rights for coverage, as well as the impact that delays in enrolling for Medicare might have on Medicare premiums.
Founded in 1970, Allied is one of the nation's oldest and most experienced third-party administrators. Allied National is a 90 Degree Benefits Company, a subsidiary of Blue Cross Blue Shield Alabama. As the small group benefit experts, Allied works with small business employers to provide unique and affordable group health benefits.
3/3/2021 07:00:41 am
It is a great blog post.I am always read your blog helpful and informative tips. I like it thanks for sharing this information with us
3/3/2021 10:51:28 am
Thanks for the nice comment. We're glad you're finding some good information in the blog. Feel free to comment on other blog posts or even suggest topics for future discussion.
11/19/2021 09:59:19 pm
Thank you for taking the time and writing this post. Great help for me! Keep doing such wonderful work in the future also. Good luck with your upcoming updates.
11/30/2022 10:38:26 am
It was most captivating when you shared that everyone with Medicare can now have coverage for prescription drugs. My friend has been complaining about the costs of her medications. I think it's best for her to look for a place that provides affordable medication.
3/2/2023 01:14:21 pm
My uncle is interested in offering Medicare plans for his future employees when he opens his business in a few months, so he wants to know more about Medicare coverage. It's good to know that employers need to provide Medicare-eligible employees when the time comes, so I'll make sure my uncle knows about this now. Thank you for the insight on Medicare plans and their drug coverage.
3/15/2023 01:23:09 pm
It was helpful when you said that Medicare part D helps cover medications. My grandma was at my house yesterday afternoon for a visit, and she told me about how she wants to look into applying for Medicare this month. I'll pass this information along to her so she can know more information about the different types!
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Allied National is a 90 Degree Benefits Company, a subsidiary of Blue Cross Blue Shield of Alabama. Founded in 1970, Allied National is one of the nation's oldest and most experienced third-party administrators. We're the small group benefit experts working to provide unique and affordable group health benefits to small business employers.
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