The Inflation Reduction Act of 2022 (IRA) introduces various cost reduction measures aimed at Medicare Part D plans, potentially impacting the creditable coverage status of employer-sponsored prescription drug plans. Beginning in 2025, employers offering prescription drug coverage to individuals eligible for Medicare Part D must notify the Centers for Medicare and Medicaid Services (CMS) and eligible individuals to ensure their prescription drug coverage is at least as good as Medicare Part D.
In our bulletin, we define creditable coverage, the instructions for determining whether coverage is creditable, and what actions employers should be taking now.
