Second Creditable and Non-creditable Coverage Notices for 2016 to be Mailed

The second creditable and non-creditable coverage notices for 2016 are being mailed 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 NRECA’s Medical Plan. The notices inform the recipient that their current prescription drug coverage is considered creditable coverage for 2016. To be considered creditable coverage, the plan must expect to pay at least as much as the standard Medicare prescription drug plan.

The first notice was sent to affected participants in September 2015, prior to Medicare Part D open enrollment. The second notice is required because cooperative plan changes or individual elections made during open enrollment may have changed the classification of some participants’ prescription drug coverage. The second notice includes participants who have become eligible for Medicare since the time of the first mailing.

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, the individual 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
For more information, check out the Creditable and Non-creditable Prescription Drug Coverage for Medicare-eligible Employees page in the Benefits Administrator Guide on the Employee Benefits website. Links to sample notices and a flier you can use to educate your employees on creditable coverage and what they can do to avoid paying a penalty for Medicare prescription drug plans are available on the page.

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