Common Mistakes Employers Make in Part D Creditable Coverage Determination

Introduction
Determining Part D creditability is vital, but many employers make mistakes that can lead to penalties and confusion. Here are the most common errors and how to avoid them.

Mistake #1: Not Reviewing Coverage Annually
Part D creditability can change from year to year. Employers must review the plan’s coverage every year to ensure it remains creditable.

Mistake #2: Failing to Notify Employees
Not informing employees about their creditable coverage status can lead to penalties when they transition to Medicare. Employers are required to send an official notice annually.

Mistake #3: Using Outdated Information
Using outdated or incorrect coverage information can lead to errors. Always ensure you have the most current data before making a determination.

Mistake #4: Ignoring Compliance Deadlines
Missing deadlines for reporting creditable coverage can result in penalties. Stay on top of important dates, and consider automating the process.

Conclusion
Avoiding these common mistakes ensures your employees are protected from penalties and that your company remains compliant with Medicare regulations.