If  you currently provide medical benefits to employees (and/or family members) in your organization that may also be eligible for Medicare benefits, and your prescription drug coverage is as good or better than the Medicare program, you need to provide a letter of “Credible Coverage” to those members by October 14, 2016.

You may be able to find a template for the letter from your benefits broker or direct provider. You must then reproduce that letter onto your organization’s letterhead to distribute to your employees or others on your medical insurance (even if they are on COBRA, or Retiree benefits), for distribution.

The letter should inform these members that they have Credible Coverage and will not be penalized by Medicare for not choosing a Medicare Part D plan.

As you may not know who is eligible for Medicare (especially family members at home), we suggest you distribute the letter to all employees on your plan.