If your company health plan offers prescription drug coverage, you are required to provide an annual notice before October 15th of each year. This notice is to all Medicare eligible employees that the prescription drug coverage is “creditable”. This written notice is intended to help beneficiaries make an informed choice about if and when to enroll in a Medicare prescription drug plan. Credible coverage is coverage that is at least as good as the Medicare drug benefit (Medicare Part D).
Medicare eligible individuals may join a Medicare drug plan when they first become eligible each year from October 15 to December 7. An individual who signs up for Medicare coverage after the initial enrollment period will pay a penalty unless s/he has proof of creditable prescription drug coverage.
Reference: SHRM.org
