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UHC Part D Creditable Coverage Deadline October 15

Sep 16, 2014

The Medicare Modernization Act mandates that certain entities offering prescription drug coverage, including employer and union group health plan sponsors, disclose to all Medicare-eligible individuals with prescription drug coverage under the plan whether such coverage is "creditable."

Determining whether or not certain coverage is creditable is essential to an individual's decision whether to enroll in a Medicare Part D prescription drug plan.

If your clients offer a prescription drug plan to Medicare-eligible individuals, understand that:

If a plan's coverage is creditable, they can elect to pursue a 28% subsidy called the Retiree Drug Subsidy (RDS) program. Under the Patient Protection and Affordable Care Act, subsidy payment to plan sponsors became taxable starting in 2013. This optional step requires additional testing and an application process. Your clients can apply for the subsidy by visiting

Applications for the subsidy must be submitted 90 days prior to the beginning of an RDS plan year, which can mirror a benefit plan year. For example, if the benefit plan year begins January 1, 2015, and your clients want the RDS plan year to be the same, they would apply for the subsidy by October 2. If they request an extension, the Centers for Medicare & Medicaid Services (CMS) will automatically grant an additional 30 days to complete the application.

Reference Materials
Bulk testing analysis reports and more information about creditable coverage is available on, as well as on the CMS website. Your clients are encouraged to check the websites often for the most up-to-date information.

If you have questions about this process, ​contact a member of your b&p Sales Team - 888.722.3373.

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