As dictated by the Medicare Modernization Act, all employers that provide prescription drug coverage to workers who are eligible for Medicare Part D are required to disclose whether their drug coverage is creditable. If it is, this means that their coverage will pay what standard Medicare also provides for.
There are three ways in which to determine whether workers' prescription plans are creditable. A plan needs to provide coverage for both brand and generic prescriptions, be capable of being accessed by retail providers and the plans must contribute at least 60 percent toward policyholders' expenses for coverage.
Once this has been determined, employers are required to disclose this information to Medicare eligible individuals before October 15 for the next open enrollment period. This includes those who are currently working for the company, their dependents as well as those who may have retired.
Employers can obtain more information on the disclosure rules and procedures by visiting the "Creditable Coverage" section at the Centers for Medicare & Medicaid Services website.
