Creditable coverage is health insurance that is expected to pay, on average, at least as much as Medicare Part D pays. If you have creditable drug coverage from an employer or union, you can delay enrolling in Part D without a late enrollment penalty. Your employer or union must notify you annually whether your coverage is creditable.
Key Points
- Creditable coverage: health insurance that pays at least as much as Medicare Part D
- Allows you to delay Part D enrollment without a late enrollment penalty
- Employer or union must notify you annually whether coverage is creditable
- Keep your creditable coverage notice for your records
- An independent agent can help you understand creditable coverage rules