Does Medicare consider the prescription drug coverage I offer to be creditable?

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.

Do you offer prescription drug coverage to employees who are eligible for Medicare? Then you and your employees need to know if that coverage meets Medicare Part D guidelines.

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

What's considered creditable? The government requires your coverage to meet Medicare Part D guidelines. These documents below can help you figure out if the prescription plans you offer meet the creditable coverage standards:

You can find out more about creditable coverage on the CMS website. You'll find samples of the notices you'll need to send to employees and more information about the process.

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

The Medicare Retiree Drug Subsidy

If the drug coverage you offer to Medicare-eligible employees is creditable, you may qualify for a program that reduces the cost of that coverage. 

The Retiree Drug Subsidy Program is 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?