Employers who provide a prescription drug benefit to employees or dependents eligible for Medicare Part D are required to visit the Center for Medicare and Medicaid Services (CMS) website, each year, to disclose the creditability status of their prescription drug benefit. The CMS requires that employers submit their disclosure on the CMS website within 60 days of the beginning of their policy's annual renewal or contract period. Many employers have policy years begining on January 1, and if this is the case for you, then you must complete this online disclosure by March 1, 2013.
The following links will take you directly to the Disclosure Form and the Instruction Guide. Completing the Disclosure Form takes about 10 minutes.
CMS Online Disclosure Form
CMS Online Disclosure Instruction Guide
Employers may think they are not subject to this regulation because none of their employees are on Medicare. However, you may not be aware that an employee or dependent is eligible for Medicare Part D. For example, an employee's dependent could be eligible for Medicare Part D because of their disability, age, or medical condition such as end stage renal disease. Since the employer may not be aware that an employee or dependent is eligible for Medicare Part D, it is recommended that all employers distribute the Medicare Part D notice to ensure full compliance.
For your reference, the following are links to the most recent version of the two Medicare Part D Model Notices. These must be distributed to employees annually before October 15th, the beginning of Medicare's open enrollment period.
Model Notice - Medicare Part D Notice - Creditable Coverage
Model Notice - Medicare Part D Notice - Non-Creditable Coverage
Employers should make every effort to ensure they are running a fully compliant health plan. This is simply one more step in the process.