Important Notice From Michigan Catholic Conference About Creditable Prescription Drug Coverage and Medicare

The purpose of this notice is to advise you that the prescription drug coverage under the Michigan Catholic Conference medical plans are expected to pay out, on average, at least as much as the standard Medicare prescription drug coverage will pay in 2025. This is known as “creditable coverage.”

Why this is important? If you or your covered dependent(s) are enrolled in any prescription drug coverage during 2025 and are or become covered by Medicare in 2025, you will not be subject to a late enrollment penalty—as long as you had creditable coverage under a medical plan within 63 days of your Medicare prescription drug plan enrollment. You should keep this notice with your important records.

If you or your covered dependents aren’t currently eligible for Medicare and won’t become eligible for Medicare in the next 12 months, this notice doesn’t apply to you.

Notice of Creditable Coverage

Please read this notice carefully. It has information about prescription drug coverage with Michigan Catholic Conference and prescription drug coverage available for people eligible for Medicare. It also tells you where to find more information to help you make decisions about your prescription drug coverage.

You may have heard about Medicare’s prescription drug coverage (called Part D), and wondered how it would affect you. Prescription drug coverage is available to everyone with Medicare through Medicare prescription drug plans. All Medicare prescription drug plans provide at least a standard level of coverage set by Medicare. Some plans also offer more coverage for a higher monthly premium.

Individuals can enroll in a Medicare prescription drug plan when they first become eligible, and each year from October 15 through December 7. Individuals leaving employer coverage may be eligible to elect Part D during a Medicare Special Enrollment Period.

If you are covered by a Michigan Catholic Conference medical plan, you have prescription drug coverage. You may be interested to know that coverage, on average, counts as “creditable coverage” under Medicare Part D because coverage provided is “at least as good” as the standard Medicare prescription drug coverage for 2025. Medicare Part D imposes a late enrollment penalty on those who don’t enroll when they are first eligible. However, this penalty does not apply to those who have had creditable coverage under another program prior to enrolling (subject to a 63 day grace period). The creditable coverage offered:

MCC Medical Plans offered through Blue Cross Blue Shield of Michigan

If you decide to enroll in a Medicare prescription drug plan and you are an active employee or family member of an active employee, you may also enroll in or continue your employer coverage. In this case, employer plan coverage will be primary and pay first as long as you are active. You can enroll or re-enroll in the employer plan at an annual enrollment or during any plan-permitted special enrollment events.

You should know that if you waive or leave coverage with Michigan Catholic Conference and you go 63 days or longer without creditable prescription drug coverage (once your applicable Medicare enrollment period ends), your monthly Part D premium will go up at least 1% per month for every month that you did not have creditable coverage. For example, if you go 19 months without coverage, your Medicare prescription drug plan premium will always be at least 19% higher than what it would have been had you enrolled in Part D when you were first eligible. You’ll have to pay this higher premium as long as you have Medicare prescription drug coverage. In addition, you may have to wait until the following November to enroll in Part D.

You may receive this notice at other times in the future—such as before the next period you can enroll in Medicare prescription drug coverage, if this Michigan Catholic Conference coverage changes, or upon your request.

For more information about your options under Medicare prescription drug coverage see the Medicare & You handbook. Medicare participants will get a copy of the handbook in the mail every year from Medicare. You may also be contacted directly by Medicare prescription drug plans. Here’s how to get more information about Medicare prescription drug plans:

Visit www.medicare.gov for personalized help.
Call your State Health Insurance Assistance Program (see a copy of the Medicare & You handbook for the telephone number).
Call 1-800-MEDICARE (1-800-633-4227). TTY users should call 1-877-486-2048.

For people with limited income and resources, extra help may be available to help you pay for a Medicare prescription drug plan. Information about this extra help is available from the Social Security Administration (SSA). Visit SSA online at www.socialsecurity.gov or call 1-800-772-1213 (TTY 1-800-325-0778).

Remember: Keep this notice. If you enroll in a Medicare prescription drug plan after your applicable Medicare enrollment period ends, you may need to provide a copy of this notice when you join a Part D plan to show that you are not required to pay a higher Part D premium amount.

For more information about this notice or your prescription drug coverage, contact:

Date: October 2, 2024
Name of Entity/Sender: Michigan Catholic Conference
Contact Position/Office: Mary Beth Morgan
Address: 510 South Capitol Avenue
Lansing, Michigan 48933
Phone Number: 517-316-3561