What Does Medicare Consider Creditable Prescription Drug Coverage

 

Medicare considers prescription drug coverage creditable if it's expected to pay, on average, at least as much as the standard Medicare Part D benefit. Here's a breakdown of what this means:

• Types of creditable coverage: This can include coverage from your current or former employer, union, TRICARE, Indian Health Service, VA, or even individual health insurance plans.
• How it helps: Having creditable coverage allows you to delay enrolling in a Medicare Part D plan without facing a penalty later. This can be beneficial if you're happy with your current plan's drug coverage and costs.
• Determining creditable coverage: It's not always straightforward to know if your plan qualifies. The good news is your employer or plan provider should send you a Notice of Creditable Coverage each year if your plan applies

• Benefits: Having creditable coverage allows you to delay enrollment in a Medicare Part D plan without facing a penalty later. This can be beneficial if you're happy with your current plan and its drug coverage.
• Determining creditable coverage: It's not always straightforward to know if your plan qualifies. The key factor is the actuarial value, which basically means how much the plan is expected to pay for your prescriptions on average.
• Help with finding out: Luckily, you don't have to figure this out alone.
• Employer/Union: If your coverage is through an employer or union, they are required to send you a Notice of Creditable Coverage each year letting you know if your plan qualifies.
• SHIP: Your State Health Insurance Assistance Program (SHIP) can also be a helpful resource to determine if your plan is creditable
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