Creditable drug coverage is prescription drug coverage that is expected to pay, on average, at least as much as Medicare Part D. If you have creditable drug coverage from an employer, union, or other source, you can delay enrolling in Part D without a late enrollment penalty. Your plan must notify you annually whether your coverage is creditable.
Key Points
- Creditable coverage: pays at least as much as Medicare Part D on average
- Allows you to delay Part D enrollment without a late enrollment penalty
- Your plan 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