New Notice Requirements for (Most) Employers Maintaining Health Plans

By November 15, 2005, every employer who offers prescription drug coverage to active or retired employees (or their spouses/dependents) who are eligible for Medicare will be subject to new notice requirements under regulations issued by the Centers for Medicare & Medicaid Services (CMS). Active or retired employees (or their spouses/dependents) who are entitled to Medicare benefits under Part A or who are enrolled in Part B (“Part D Eligibles”) must be notified of whether such private coverage constitutes “creditable prescription drug coverage” for purposes of the new Medicare prescription drug coverage (“Part D”), which takes effect January 1, 2006. The notice requirement applies regardless of whether the employer applies for the new subsidy for retiree prescription drug coverage.