CMS Disclosure Requirement for all Employers with Group Health Insurance

The federal government's deadline is drawing near for open enrollment in the new Medicare Par D prescription drug program. Because of this, Medicare is verifying that those eligible for Medicare, and who receive health coverage through their employer, understand the value of their current prescription drug benefits.

The purpose of this article is to help you through the verification process.

BlueCross BlueShield of Oklahoma, PacifiCare, and Principal have already verified that all standard group prescription drug benefits are "creditable". This means the prescription drug benefits are as good as, or better than, standard Medicare Part D prescription drug benefits. It also means that if you have covered employees or their covered dependents eligible for Medicare, they can purchase Part D coverage after May 15, 2006 without paying penalties to Medicare, as long as they maintain their creditable coverage.

Now Medicare wants verification directly from your group by March 31, 2006 that your covered, Medicare-eligible employees and dependents have "creditable" prescription drug benefits. Even if your group currently does not have any covered, Medicare-eligible employees or dependents, you must still complete the verification process.

By law, your insurer cannot do this individual verification of "creditable" coverage for you. However, the process is fairly simple:

1. Go to https://www.cms.hhs.gov/apps/ccdisclosure/default.asp. This will bring you to an online form that you must complete for your group health plan.

2. Complete the online form. Near the end of the form, you will be asked "Date the Annual Creditable Coverage Disclosure to Part D Eligible individuals requirement was completed by the entity (MM/DD/YYYY)." The answer to this question is 10/31/2005.

If you have questions or need help completing the form, please contact us by e-mail or by calling 405-478-3836.