Medicare Part D Prescription Drug Coverage

Medicare Part D coverage is part of the Medicare Modernization Act that was signed into law in 2003. It provides seniors and people with disabilities with the first comprehensive prescription drug benefit ever offered under the Medicare program.

Medicare Part D insurance is provided by private companies that have been approved by Medicare. Starting January 1, 2006, new Medicare prescription drug coverage was available to everyone who is entitled to Medicare Part A or enrolled in Part B.

The Centers for Medicare & Medicaid Services (CMS) is the federal agency responsible for administering the Medicare and Medicaid programs.

To support our employer groups and customers, we offer help in two areas:

Medicare Retiree Drug Subsidy Process

The Retiree Drug Subsidy Program is an option available through Medicare that enables employers and unions to continue providing their Medicare-eligible retirees and Medicare-eligible dependents with employer-sponsored drug coverage.

For more details, check out our Medicare Retiree Drug Subsidy FAQ.

Notice of Creditable Prescription Drug Coverage

The Medicare Modernization Act mandates that a Notice of Creditable Coverage must occur by October 15 each year. This means a plan sponsor offering prescription drug coverage must notify all Medicare Part D-eligible individuals (active or retired) whether or not their prescription drug coverage is "creditable."

To determine if the prescription plans you offer meet the creditable coverage standards established by CMS, please check:

Sample notices and CMS's Guidance for creditable and non-creditable coverage and CMS's instructions for the Notice of Creditable Coverage process are also available on the CMS website.

For more details about creditable coverage, check out Medicare Part D Creditable Coverage (PDF).