Medicare Part D

Each year, employers who offer group health coverage must notify Medicare Part D-eligible participants and Centers for Medicare and Medicaid Services (CMS) to let them know whether the health plan's prescription drug coverage is creditable or non-creditable. This process is called a Notice of Creditable Coverage and Sana makes it easy by creating documentation for our plan administrators. 

What is Medicare Part D?

Medicare’s prescription drug coverage program.

Why does Notice of Creditable Coverage matter?

A Medicare-eligible subscriber or dependant can choose to stay on your group plan; however, if they do not sign up for Medicare Part D at their first available opportunity, they may have to pay a late-enrollment penalty. 

  • If they do not meet creditable coverage requirements, the premium increase is typically one percent (1%) per month for late enrollment.
  • Beneficiaries who have proof of prior creditable coverage, meaning their current prescription drug coverage is as good as the current Medicare drug benefit, will avoid paying late-enrollment penalties.

Next Steps

Sana provides the Notice of Creditable Coverage to employer groups annually in September. 

Plan administrators must provide the annual notice to Medicare-eligible individuals before October 15th — the start date of the annual enrollment period for Medicare. 

There are two ways you can share the Notice of Creditable Coverage: 

  1. Print and distribute from your Admin Document Center
  2. Refer employees to the Document Center of their Sana account

As a plan administrator, you must notify the CMS of your plan’s Creditable Coverage by completing this form on their website. After entering your company information, select “All Options offered are Creditable”. Please do this no later than 60 days after your plan begins.

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