Creditable Coverage

The Medicare Modernization Act (MMA) requires entities (whose policies include prescription drug coverage) to notify Medicare eligible policyholders whether their prescription drug coverage is creditable coverage, which means that the coverage is expected to pay on average as much as the standard Medicare prescription drug coverage. For these entities, there are two disclosure requirements: 1) to provide a written disclosure notice to all Medicare eligible individuals annually who are covered under its prescription drug plan; and 2) to complete the annual Online Disclosure to CMS Form to report the creditable coverage status of their prescription drug plan.