Non-Creditable Coverage Template Letter For Employers (2018)

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Non-Creditable Coverage Template Letter for Employers (2018)
Important Notice From {Employer Group}
About Your Prescription Drug Coverage and Medicare
Please read this notice carefully and keep it where you can find it. This notice has information
about your current prescription drug coverage with {Employer Group} and about your options
under Medicare’s prescription drug coverage. This information can help you decide whether
or not you want to join a Medicare drug plan. Information about where you can get help to
make decisions about your prescription drug coverage is at the end of this notice.
There are three important things you need to know about your current coverage and Medicare’s
prescription drug coverage:
1. Medicare prescription drug coverage became available in 2006 to everyone with Medicare. You
can get this coverage if you join a Medicare Prescription Drug Plan or join a Medicare Advantage
Plan (like an HMO or PPO) that offers prescription drug coverage. All Medicare drug plans provide at
least a standard level of coverage set by Medicare. Some plans may also offer more coverage for a
higher monthly premium.
®
2. The prescription drug coverage offered through the {Plan Name} from MVP Health Care
is, on
average for all plan participants, NOT expected to pay out as much as standard Medicare prescription
drug coverage pays. Therefore, your coverage is considered Non-Creditable Coverage. This is
important because, most likely, you will get more help with your drug costs if you join a Medicare drug
plan, than if you only have prescription drug coverage from the {Plan Name}. This also is important
because it may mean that you may pay a higher premium (a penalty) if you do not join a Medicare
drug plan when you first become eligible.
3. You can keep your current coverage from {Employer Group}.However, because your coverage is
non-creditable, you have decisions to make about Medicare prescription drug coverage that may
affect how much you pay for that coverage, depending on if and when you join a drug plan. When you
make your decision, you should compare your current coverage, including what drugs are covered,
with the coverage and cost of the plans offering Medicare prescription drug coverage in your area.
Read this notice carefully - it explains your options.
_______________________________________________________________________________
When Can You Join A Medicare Drug Plan?
You can join a Medicare drug plan when you first become eligible for Medicare and each year from
October 15 to December 7.
[INSERT IF EMPLOYER/UNION SPONSORED GROUP PLAN: However, if you decide to drop your
current coverage with {Employer Group} since it is employer/union sponsored group coverage, you
will be eligible for a two (2) month Special Enrollment Period (SEP) to join a Medicare drug plan;
however you also may pay a higher premium (a penalty) because you did not have creditable
coverage under {Plan Name}.]
[INSERT IF PREVIOUS COVERAGE PROVIDED BY THE ENTITY WAS CREDITABLE
COVERAGE: Since you are losing creditable prescription drug coverage under the [Insert Name of
Plan], you are also eligible for a two (2) month Special Enrollment Period (SEP) to join a Medicare
drug plan.]

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