Notice of Creditable Coverage ( Important Notice from HRCentral about Your Prescription Drug Coverage and Medicare )
Please read this notice carefully and keep it where you can find it . This notice has information about your current prescription drug coverage with HRCentral and about your options under Medicare ’ s prescription drug coverage . This information can help you decide whether or not you want to join a Medicare drug plan . If you are considering joining , you should compare your current coverage , including which drugs are covered at what cost , with the coverage and costs of the plans offering Medicare prescription drug coverage in your area . Information about where you can get help to make decisions about your prescription drug coverage is at the end of this notice .
There are two important things you need to know about your current coverage and Medicare ’ s prescription drug coverage :
1 . Medicare prescription drug coverage became available in 2006 to everyone with Medicare . You can get this coverage if you join a Medicare Prescription Drug Plan or join a Medicare Advantage Plan ( like an HMO or PPO ) that offers prescription drug coverage . All Medicare drug plans provide at least a standard level of coverage set by Medicare . Some plans may also offer more coverage for a higher monthly premium .
2 . HRCentral has determined that the prescription drug coverage offered by the HRCentral Employee Benefit Plan is , on average for all plan participants , expected to pay out as much as standard Medicare prescription drug coverage pays and is therefore considered Creditable Coverage . Because your existing coverage is Creditable Coverage , you can keep this coverage and not pay a higher premium ( a penalty ) if you later decide to join a Medicare drug plan .
When Can You Join A Medicare Drug Plan ?
You can join a Medicare drug plan when you first become eligible for Medicare and each year from October 15th to December 7th .
However , if you lose your current creditable prescription drug coverage , through no fault of your own , you will also be eligible for a two ( 2 ) month Special Enrollment Period ( SEP ) to join a Medicare drug plan .
What Happens To Your Current Coverage If You Decide to Join A Medicare Drug Plan ?
If you decide to join a Medicare drug plan , your current HRCentral coverage will not be affected . You can keep this coverage if you elect part D and this plan will coordinate with Part D coverage .
If you do decide to join a Medicare drug plan and drop your current HRCentral coverage , be aware that you and your dependents will not be able be able to get this coverage back until the next HRCentral Open Enrollment period .
When Will You Pay A Higher Premium ( Penalty ) To Join A Medicare Drug Plan ?
You should also know that if you drop or lose your current coverage with HRCentral and don ’ t join a Medicare drug plan within 63 continuous days after your current coverage ends , you may pay a higher premium ( a penalty ) to join a Medicare drug plan later .
If you go 63 continuous days or longer without creditable prescription drug coverage , your monthly premium may go up by at least 1 % of the Medicare base beneficiary premium per month for every month that you did not have that coverage . For example , if you go nineteen months without creditable coverage , your premium may consistently be at least 19 % higher than the Medicare base beneficiary premium . You may have to pay this higher premium ( a penalty ) as long as you have Medicare prescription drug coverage . In addition , you may have to wait until the following October to join .
For More Information about This Notice or Your Current Prescription Drug Coverage …
NOTE : You ’ ll get this notice each year . You will also get it before the next period you can join a Medicare drug plan , and if this coverage through HRCentral changes . You also may request a copy of this notice at any time .
For More Information about Your Options under Medicare Prescription Drug Coverage …
More detailed information about Medicare plans that offer prescription drug coverage is in the “ Medicare & You ” handbook . You ’ ll get a copy of the handbook in the mail every year from Medicare . You may also be contacted directly by Medicare drug plans .
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