How to Determine If Your Employee’s Part D Coverage Is Creditable

Determining if an employee's prescription drug coverage is creditable can seem like a complicated process, but it doesn’t have to be. In this post, we’ll provide a step-by-step guide to help employers check the creditability of their Part D coverage.

Step 1: Understand the Definition of Creditable Coverage

First, ensure you understand what “creditable” means. For a drug plan to be considered creditable, it must provide benefits that are at least as good as Medicare's Part D coverage.

Step 2: Review Your Plan’s Coverage

Look at the specifics of your prescription drug plan. The plan’s summary of benefits will outline if the coverage is at least as good as the standard Part D plan.

Step 3: Use a Part D Credibility Calculator

Use automated tools, like our Part D Credibility Calculator, to verify your plan’s creditability. These calculators can provide a quick and accurate determination.

Step 4: Notify Employees

Once you’ve confirmed the creditability, ensure your employees are informed about the status of their coverage.

By following these simple steps, you can determine if your employees’ coverage is creditable and avoid potential penalties for both your business and your employees.