Resources
CMS Issues Updated Model Annual Disclosure Notice
Date:
08/08/2008
Source:
Walter W. Miller
Link:
http://www.cms.hhs.gov/CreditableCoverage/09_CCafterJune15.asp#TopOfPage
Description:
An employer that sponsors a group health plan covering employees or spouses who are eligible for Medicare is required once a year to provide a Medicare Part D "Disclosure Notice" to such individuals. The Disclosure Notice advises the individual as to whether or not the prescription drug coverage is "creditable" (i.e., whether the prescription drug coverage has a value that, actuarially speaking, is at least as good as the prescription drug coverage available under the Medicare Part D program). If the coverage is creditable, then the individual can delay signing up for Medicare Part D coverage without later becoming subject to a late enrollment premium surcharge.
In general, the Disclosure Notice is to be provided by November 14 of each year (regardless of the plan year of the underlying plan). However, as a matter of administrative convenience (and so as to not overlook this reporting obligation), employers frequently include the Disclosure Notice in its annual open enrollment materials.
The Centers for Medicare & Medicaid Services ("CMS") has released a set of updated Model Disclosure Notices to be used after June 15, 2008. The updated notices are significantly easier to understand. Employers will wish to use the applicable version of the new Model Disclosure Notice when providing the notice for this year.
The updated notices (including Word versions) have been posted by CMS on its website, at: http://www.cms.hhs.gov/CreditableCoverage/09_CCafterJune15.asp#TopOfPage (you can also click on the link above).
Should you have any questions regarding the CMS Disclosure rules or the updated Model Disclosure Notices, contact Wally Miller of our Employee Benefits Group.