Whether it comes through a government program or an employers’ benefits packages, medical coverage requires a great deal of management. Individuals and organizations must track and share coverage and enrollment options, including proper Medicare Part D prescription drug sponsorship. However, a benefits brokerage service provider can assist with such operations, ensuring that your employees reap the benefits they deserve.
For support in determining and distributing coverage and benefits options, turn to Benefits Business Group in Fairfax, VA. In contrast to other benefits brokerages, we proudly maintain our independence from shareholders and banks. Doing so allows us to provide the best options for customers rather than tailoring choices for a board of directors. If you’re interested in the flexibility of such an approach, reach out and ask about our services today.
Below, we review Medicare Part D information that you should keep in mind:
What is Medicare Part D Notice?
A primary goal of our company is to help our clients improve their benefits packages and health insurance plans. However, benefits and medical coverage can be tricky to understand and implement. So, before optimizing your plan, you should explore its capabilities.
Case in point: Medicare Part D notice. This term refers to a requirement that employers whose health plan offers prescription drug coverage to Medicare-eligible individuals must notify employees of such coverage annually.
However, as with all facets of health insurance, this definition requires unpacking. Coverage providers are required to distribute such notices of creditable coverage by law, so you should prioritize doing so. Moreover, the details of Part D coverage shifted for the year 2021.
The Most Recent Updates to Part D Coverage
Medicare benefits coverage changes virtually every year. However, Part D’s details shifted in particular ways for 2021:
- The income brackets for high-income premium adjustments increased from $85,000 to $88,000 (for a single person)
- The maximum allowable deductible for standard plans increased from $435 to $445
- The out-of-pocket threshold – where catastrophic coverage begins – increased from $6,350 to $6,550
- Copay amounts for people who reach the catastrophic coverage level increased to $3.70 for generics and $9.20 for brand-name drugs.
Key coverage details remain the same. For instance, Part D eligible individuals could include active employees, disabled employees, and retirees along with their spouses and dependents.
Content and Delivery of Part D Notices
With the recent updates in mind, consider what material should be included in your Part D notices. The Centers for Medicare & Medicaid Services (CMS) website offers Part D notice forms for employers, easing the burden of responsibility. However, if you want to write your own Part D notice, it should include:
- An announcement that you (the employer) have determined that your prescription drug coverage is creditable or not
- Information on creditable or non-creditable coverage
- A description of employees’ right to a notice
- Information on the coverage options available
- An explanation of the importance of creditable coverage. Additionally, include information about Part D premiums and the consequences of breaking creditable coverage within 63 continuous days or longer before enrolling in a Part D plan.
Although certain circumstances allow for Part D notices to be sent electronically, they are usually sent through the mail. Nevertheless, do so before the start of annual Medicare enrollment–October 15–so that employees have ample opportunity to enroll.
Independent and Comprehensive Benefits Brokerage Services Available in Fairfax, VA
The nuances and complexities of both health coverage and benefits packages demand a great deal of thought and attention. Rather than sacrifice your time, reach out to Benefits Business Group, a professional benefits brokerage service. We offer consulting services for benefits, insurance, compliance, technology, and more to businesses in and beyond Fairfax, VA. The benefits world is complex—get a guide and give your employees the support they deserve. Call us today at 844-201-3609 or fill out our online form for more information.