Medicare Part D is a program that helps eligible individuals pay for outpatient prescription drugs. This coverage is provided by Medicare-approved insurance companies and sponsors. Every year, Medicare Part D requires group health plan sponsors to disclose whether their health plan’s prescription drug coverage is creditable.
If your small business sponsors group health plans, you will need to provide an annual disclosure notice to your staff before October 15, 2020 - which is the start date of enrollment for Medicare Part D. The Centers for Medicare and Medicaid Services (CMS) has helpfully provided templates for the disclosure notices on their website that you can use.
This notice is important for your team. If they are not covered by creditable drug coverage or forget to enroll in Medicare Part D early on in enrollment season, they will face high premiums - and who would want to empty out their wallets for much needed medication?
Of course, there are no penalties for not putting out the disclosure notices; but your employees would suffer the consequences and as an employer, this gesture would show you care about their well-being and good health.
If you have any concerns about sponsoring health plans for your employees, talk to the insurance experts at NY Small Health today.