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How can I determine whether my drug coverage is creditable?

I am on Medicare with a retiree plan. Can I keep that drug coverage?
I plan to keep my employer group health plan when I turn 65. How do I figure out whether the drug coverage is creditable?

Those turning 65 who do not have creditable prescription drug coverage will face a late enrollment penalty if/when they enroll in a Part D prescription drug plan. If the drug coverage is creditable, they can delay signing up for a Part D plan without facing a late enrollment penalty. 

So, how can one determine whether drug coverage is creditable? (Creditable means that the coverage is expected to pay on average as much as the standard Medicare prescription drug plan.) There are two ways to determine the status.

  • Watch for a notice in the mail. Medicare requires companies whose policies include prescription drug coverage to provide a written notice by October 15 every year to Medicare-eligible individuals. This notice would state whether the drug coverage was creditable.
  • For those turning 65 at other times during the year, ask the health plan administrator for a copy of the notice. 

If the coverage is creditable, the individual should keep the notice in case he or she decides to enroll in a Part D plan in the future. If the coverage is not creditable, the individual can select a Part D prescription drug plan, either during the Initial Enrollment Period or the annual Open Enrollment Period. 

Last updated: 08-28-2018