What words come to your mind when you think of Medicare Part D? Complex – Confusing – Ever-Changing – Choices – Deadlines? Not only do you have to maintain the success of your operations, employee retention, payroll taxes, and employee insurances but you must also comply with Medicare Part D requirements.
What is Medicare Part D?
Medicare Part D is an option to help cover prescription costs for everyone who qualifies for Medicare. It is a separate prescription drug plan which varies in costs and covered drugs, all of which can change from year to year.
What is required?
The Medicare Part D notice is a yearly notification that advises Medicare-eligible individuals (and their dependents) if the prescription coverage associated with a group health insurance is at least as good as (“creditable”) Medicare’s. This notice is required by the Medicare Modernization Act and should be provided to Medicare-eligible individuals before each year’s Medicare Part D annual enrollment period by October 15th. A notice of a group health plan’s prescription coverage being “creditable” or not allows Medicare-eligible individuals to make an informed decision to remain on their current prescription drug plan or to enroll in a Medicare Part D prescription plan. If your plan does not offer prescription drug coverage, no Medicare Part D notice is required.
How do I provide this notice?
While the notice may be electronically distributed and the Department of Labor guidelines for electronic delivery of group health plan materials are followed, first-class mailing is universally accepted and recommended by the Centers for Medicare & Medicaid Services (CMS). During this time, it is a great idea to firm up email addresses and physical addresses of Medicare participants to ensure both correct and efficient delivery. For more information about creditable coverage, please visit the Center for Medicare & Medicaid Services website https://www.cms.gov/medicare/employers-plan-sponsors/creditable-coverage?redirect=/creditablecoverage which includes a Creditable Coverage Simplified Determination method that plan sponsors may use to determine if their plan provides creditable coverage.
What if I need assistance?
Although there are no specific penalties for employers that fail to comply with the Medicare Part D notice requirements (except employers claiming the Retiree Drug Subsidy), as a payroll client of ConceptHR who has elected benefits administration, these notices can be created and filed each year on your company’s behalf. Not only do our services such as payroll, time management, 401(k) MEP, HR, and benefits administration save you time, but ConceptHR allows your group to be more focused on driving your business to success.
Interested in learning how ConceptHR can help streamline payroll and benefits? Check out our website and call or email today: www.concepthr.com or 803-663-5374.
Autumn Stevens serves as the Insurance and Benefits Coordinator at ConceptHR, bringing over 15 years of specialized experience to her role. Autumn has guided countless businesses through the complexities of compliance and benefits optimization, with a special expertise in the Affordable Care Act. Her unwavering commitment to God and her goal-oriented approach has earned her a reputation for excellence and integrity in her field, establishing her not just as an authority in her domain, but as a trusted partner.
If you have questions about today’s article or any HR issue you are having, please email info@concepthr.com.
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