Attachment: Legislative Brief - CMS Disclosure


This important information is only for our clients who sponsor a group health plan that provides prescription drug benefits. It provides IMPORTANT information about the annual disclosure notice that these plan sponsors/employers must make to the government regarding the "creditability" of their group prescription drug benefits with Medicare Part D. No disclosure notice is required from plan sponsors who received the Medicare Part D federal subsidy.

The Medicare Prescription Drug, Improvement and Modernization Act of 2003 (MMA) became law on December 8, 2003. The MMA, among other things, made changes to the existing Medicare program as well as created a voluntary prescription drug program for Medicare Part D eligible individuals.

The final regulations provide that group health plans or entities that offer prescription drug coverage on a group basis to active and retired employees and to Medicare Part D eligible individuals must provide, or arrange for providing, a notice of creditable prescription drug coverage to those Medicare Part D eligible individuals who are covered by, or who apply for, prescription drug coverage under the entity's plan.

This disclosure to CMS is required to be made annually and upon any change that affects whether a group health plan's prescription drug coverage is creditable.

The disclosure to CMS may be made through the CMS website at http://www.cms.hhs.gov/CreditableCoverage.

Please see the attached PDF above for further information on CMS disclosure.

CMS requires this disclosure be made by an employee of the sponsoring employer, so your TPG Service Team regretfully is precluded from making the disclosure for our clients. However, contact your TPG Benefits Service Administrator/Specialist if you would like help making your CMS disclosure.