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September 4, 2020
The Medicare Prescription Drug, Improvement and Modernization Act of 2003 (MMA) added a voluntary outpatient prescription drug benefit to the Medicare program, known as Medicare Part D. This became effective Jan. 1, 2006.
Employers with group health plans that provide prescription drug coverage to Medicare Part D eligible individuals are subject to disclosure requirements under Medicare Part D.
Medicare Part D requires employers to disclose whether their prescription drug coverage is ‘creditable’ to the Centers for Medicare and Medicaid Services (CMS) and to Medicare Part D eligible individuals. These disclosures must be made on an annual basis and at certain other designated times.
In addition, the MMA created a subsidy to encourage employers with retiree prescription drug plans to maintain this coverage even after the Medicare Part D program became effective.