2019 Creditable and Non-creditable Coverage Notices Being Mailed

NRECA will send notices the week of September 17 to all active employees and active directors who are eligible for Medicare—primarily those age 65 and older—and Medicare-eligible spouses and dependent children who currently have prescription drug coverage through the NRECA Medical Plan.

The notices let them know if their current prescription drug coverage will be considered creditable coverage by Medicare for 2019. To be considered creditable prescription drug coverage, the plan must expect to pay at least as much as the standard Medicare Part D prescription drug plan. Medicare requires all employer plans to send the notices every year before open enrollment, which begins October 15 and runs through December 7.

Creditable and non-creditable plans
Medicare-eligible active employees and directors and Medicare-eligible spouses and dependent children who are enrolled in a creditable plan will not have to enroll in a Medicare Part D plan now, and they will not have to pay a late enrollment penalty if they enroll in a Medicare Part D plan in the future. If they are enrolled in a non-creditable plan, they may have to pay a late enrollment penalty if they enroll in a Medicare Part D prescription drug plan at a later date.

Note: All NRECA high-deductible health plans are non-creditable plans.

Participants enrolled in a non-creditable plan can take steps, including enrolling in another prescription drug plan that’s creditable or delaying enrollment in Medicare, to avoid the possibility of a late enrollment penalty later on. The flier, “Ensure You Have Creditable Prescription Drug Coverage,” helps affected participants understand their options.

Want to know more?
To find out more about this issue, visit the Creditable & Non-Creditable Coverage page in the BA Guide. In addition to information and other resources, you will find sample creditable coverage and non-creditable coverage notices.

If you have any questions, contact the Member Contact Center at 866.673.2299 or contactcenter@nreca.coop.