2016 Creditable and Non-creditable Coverage Notice Mailed

NRECA sent notices 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 creditable coverage for 2016. To be 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 notice every year before open enrollment, which began October 15 and will end on 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. Please note that effective January 2014, all high-deductible health plans offered by NRECA were deemed non-creditable plans. More information about the options available to participants appears in the brochure “Protect Your Medicare Benefits.”

The brochure “Protect Medicare Benefits for Older Workers” also may help you provide guidance to affected participants.

Sample notices online
Samples of creditable coverage and non-creditable coverage notices are posted on the Employee Benefits website.

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