What employers need to know about the Medicare Retiree Drug Subsidy

Who is this for?

Learn more about the Medicare Retiree Drug Subsidy

This information will help employers to notify their employees, spouses or retirees who are Medicare-eligible whether their prescription drug coverage is creditable coverage.

Medicare Part D coverage provides seniors and people with disabilities with prescription drug benefits through Medicare.

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

Are your prescription plans creditable?

If you offer prescription drug coverage, you need to notify anyone who is eligible for Medicare Part D whether or not their prescription coverage is creditable by Oct. 15. 

What's considered creditable? To see 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).

Retiree Drug Subsidy process

The Retiree Drug Subsidy Program is another option available through Medicare. Employers and unions provide drug coverage to retirees and dependents who are eligible for Medicare.

To learn about the four steps of the Retiree Drug Subsidy Program, read What’s the Medicare Retiree Drug Subsidy.

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