The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 requires that all group health plan sponsors offering prescription drug coverage must annually inform Medicare-eligible individuals about whether their coverage is classified as creditable or non-creditable.

Coverage is considered creditable if it is expected to provide benefits that are at least as good as the standard Medicare Part D plan. On the other hand, coverage is classified as non-creditable if it does not meet this threshold and provides, on average, less robust financial protection than Medicare Part D.

Each year, the Medicare Part D enrollment period runs from October 15 to December 7. Plan sponsors are required to notify eligible individuals of the status of their prescription drug coverage by October 14, prior to the start of the enrollment period. This deadline applies to all insured plans, regardless of the plan size, employer size, or grandfathered status.

It is essential that Medicare-eligible individuals receive this notice to understand whether their current prescription drug coverage meets or exceeds Medicare's standards.

Please note that the Massachusetts Bankers Association plans with Blue Cross and Blue Shield are classified as creditable.

A fillable PDF template for the Creditable Coverage Notice is available here for your convenience.