Webinar provides detailed information on Medicare Part D

Medicare has always been a difficult topic and the Medicare Prescription Drug Improvement and Modernization Act of 2003 (MMA) has added one more facet of confusion for employers to muddle through. What many employers may not realize is this ruling does affect them with a required notification to be sent no later than November 15, 2005.

Medicare prescription drug coverage is insurance provided by private companies that have been approved by Medicare. It is often referred to as Medicare Part D. Starting January 1, 2006, new Medicare prescription drug coverage will be available to everyone with Medicare.

Employers are required to provide a notice to all Medicare participants regarding whether the prescription drug coverage offered by the employer constitutes “creditable prescription drug coverage.” Creditable coverage is coverage that has an actuarial value that equals or exceeds the value of Part D. This notice must be initially sent by November 15, 2005, annually thereafter and at various other times. It may be included in other regular employee communications, like Summary Plan Descriptions (SPDs) or open enrollment materials, however it must be prominent.

To assist employers with a better understanding of how to comply with MMA, Infinisource will host a webinar on September 29 and October 13, 2005, from 1:30 – 2:45 PM, EDT. The presentation will provide an in-depth explanation of the requirements. If interested in attending this webinar, please contact our Seminar Department at 800-300-3838 or visit the website to register.

In the guidance released by the IRS, it was noted that third parties might help employers satisfy the notice requirement. Therefore, Infinisource is pleased to announce a solution to help employers satisfy the initial notice requirement, for the November 15, 2005, deadline only. Infinisource will generate the applicable customized Creditable Coverage or Non-Creditable Coverage Notice that is suitable for a blanket mailing and send it to your entire participant population with proof of mailing.

For those employers contracting this service, we have designed a four-step determination test to assist in determining whether your plan is Creditable or Non-Creditable Coverage. Additional details on this new service are available on our website or if you prefer to talk to a sales team member, please call 800-779-6384.

For more details on Medicare Part D, please refer to the News Room bulletin Medicare Part D Imposes New Requirements on Employers posted on September 9, 2005.

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