Employer/Union Coverage of Drugs
•Employer or Union Coverage: Employers/unions will notify their employees of whether their non-Medicare prescription drug coverage is “creditable” (coverage that, on average, equals at least as much as Medicare’s standard Part D coverage expects to pay) via an annual statement.
o If coverage is creditable and the beneficiary keeps it, they will not incur a premium penalty if later they lose or drop the employer coverage and joins a Part D plan.
o If coverage is not creditable, the beneficiary will need to enroll in Medicare Part D during his/her initial eligibility period to avoid the late enrollment penalty.
•If a beneficiary has creditable drug coverage through TriCare, the VA, or the FEHBP, they can compare that coverage with available Part D plans to decide whether to enroll in Part D.
•The beneficiary should check with the employer or union benefits administrator before making changes to their employer/union coverage.
o If a beneficiary drops employer/union prescription drug coverage, they may not be able to get it back and may also lose health coverage.
•There will be no late enrollment penalty if the beneficiary retires or otherwise loses employer/union creditable coverage and joins a Medicare Part D plan or otherwise obtains creditable drug coverage within 63 days.
