I have coverage from a former employer or Union?

Some Medicare beneficiaries may have prescription drug coverage from a former employer or Union and as long as that coverage is deemed creditable (as good as or better than Medicare Part D) they do not need to enroll in Medicare Part D. These beneficiaries must be notified by the plan sponsors by November 15^th of each year if their benefits are creditable or not.

Sometimes Medicare beneficiaries could benefit from having both employer or union sponsored coverage AND an individual Medicare Part D plan.  However, some employers or unions do not allow members to maintain their group coverage AND enroll in a Medicare Part D plan.  Enrollment in a Medicare Part D plan could jeopardize your employer group or union coverage. It is important that you check with your employer or union prior to enrolling in a Medicare Part D plan. 

Medicare beneficiaries enrolled on a creditable prescription drug plan will not be penalized the 1% per month Medicare Part D penalty should they lose their employer group or union coverage and later need to enroll in a Medicare Part D plan as long as their employer group or union coverage is creditable.