As we approach October 15, employers offering prescription drug coverage have an important responsibility: delivering the Medicare Part D Notice of Creditable Coverage to all Medicare-eligible individuals on their health plan. This annual notice is not just a formality; it plays a critical role in helping employees and retirees make informed decisions about their prescription drug benefits during Medicare’s Annual Enrollment Period.

What the Notice Does

The Creditable Coverage Notice informs individuals whether your prescription drug coverage is considered creditable (expected to pay, on average, at least as much as the standard Medicare Part D plan) or non-creditable. This information allows them to decide whether to remain on your plan or enroll in a Part D plan without risking a late enrollment penalty.

Who Must Receive It

All Medicare-eligible participants in your plan must receive this notice, including active employees, COBRA enrollees, retirees, and their dependents. Because eligibility changes frequently (such as employees aging into Medicare mid-year), it’s a best practice to send the notice to all covered members, removing any guesswork and reducing compliance risk.

When and How to Distribute

The deadline to deliver this notice is on or before October 15, 2025. Employers can distribute the notice electronically, if certain conditions are met, or by mail. Posting it on your intranet or including it in open enrollment materials can also help ensure visibility.

Why Timely Compliance Matters

Failing to send the notice on time can leave your employees in the dark about their coverage options, potentially causing them to incur costly late penalties. It may also expose your company to compliance headaches or employee relations issues if coverage decisions are made without the proper information.

Get Started Now

If you haven’t prepared your Creditable Coverage Notice, now is the time to act. Review your prescription plan’s actuarial status, confirm its creditable or non-creditable designation, and distribute notices well before the deadline.

Need help preparing or distributing your notice? We can guide you through the process to keep you compliant and give your employees confidence in their coverage decisions.