The Medicare Modernization Act (MMA) imposes a late enrollment penalty on individuals who do not maintain Creditable Coverage for a period of 63 days or longer following their initial enrollment period for the Medicare prescription drug benefit.  MMA mandates that certain entities offering prescription drug coverage, including employer and union group health plan sponsors, disclose to all Medicare eligible individuals with prescription drug coverage under the plan whether such coverage is "creditable."  This information is essential to an individual's decision whether to enroll in a Medicare Part D prescription drug plan.

Following are guidance documents relating to Creditable Coverage requirements for employer plan sponsors and model notice documents:

• Summary of Employer Notice Requirements (pdf)
• Cover Letter for Employer Disclosure Notice (Word)
• Guidance - Disclosure of Creditable Coverage to Medicare Part D Eligible Individuals Guidance (pdf)
• Model Individual Creditable Coverage Disclosure Notice (Word)
• Model Individual Creditable Coverage Disclosure Notice-Spanish (Word)
• Model Individual Non-Creditable Coverage Disclosure Notice (Word)
• Model Individual Non-Creditable Coverage Disclosure Notice-Spanish (Word)
• Model Personalized Individual Disclosure Notice (Word)
• Model Personalized Individual Disclosure Notice-Spanish (Word)

See also, Creditable Coverage Disclosure to the Centers for Medicare & Medicaid Services (CMS)