August 29, 2005 |
Posted By Diane Pfadenhauer |
Medicare Part D - What Employers Need to Do
There are a number of requirements that employers must comply with under the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (or MMA, for short). The MMA, among other things, provides for presciption drug benefits (Medicare Part D) for retirees beginning January 1, 2006. Specifically there are a number of notification requirements that employers must meet:
- By September 30, employers who want to receive a federal subsidy for their plan drug costs, must file a request.
- The Part D coverage will be available for a premium of $35/month. Like other Medicare programs, individuals who have alternative "creditiable" coverage (such as some employer health plans) may choose to not enroll in Part D without a penalty. According to the Centers for Medicaid and Medicare Services (CMS), employers must notify, by November 15, 2005, all Part D eligible participants (including employees, retirees and spouses) regarding whether their plan is "creditable coverage" under Part D. November 15th is also the beginning of the open enrollment period for Part D.
For a more detailed explanation, go here for an article by Ford & Harrison. The CMS website is available here.