Employers whose health care plans include prescription drug benefits for active employees or retirees who are Medicare-eligible must notify those covered individuals by October 15 of each year whether their drug benefit is “creditable coverage”. This means that the drug coverage it is expected to cover, on average, as much as the standard Medicare Part D prescription drug plan. 

Generally employer group plans that include drug coverage are “creditable coverage” and any that do not offer drug coverage are not considered creditable coverage.

You must also notify CMS annually of your determination of whether your prescription drug plan is “creditable coverage.” This notification should be done electronically through CMS’s web site. The link to the web registration on CMS’s web site can be found at: