HR Question: I am getting ready to report “creditability” of my prescription plans in March of this year, but I just sent a notice in October. Are these the same notices? And if so, why do I need to send them out twice?
HR Answer: The Medicare Modernization Act (MMA) and the Centers of Medicare and Medicaid Services (CMS) require employers to inform Medicare-eligible policyholders of the status of their prescription drug coverage. This essentially helps beneficiaries understand if their current coverage is as good as or better than the standard Medicare Part D plan.
To do this, employers must take two different actions to fulfill compliance reporting when offering prescription drug coverage to members over the age of 65 (whether primary or secondary coverage).
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