Creditable Coverage for Prescription Drugs
Is coverage that is expected to pay at least as much as Medicare’s Standard Prescription Drug Coverage, on average.
Examples of creditable coverage are Employer or Unions plans, VA Benefits, TRICARE or Indian Health Services.
If you HAVE creditable coverage when you become eligible for Medicare
You typically can keep it without having to pay a penalty later, should you later elect Prescription Drug Coverage.
How do you know if you have Creditable Coverage?
The company providing the Prescription Drug Coverage must inform you annually if the coverage is “Creditable” or not. This comes as a letter or in their newsletter each year.
It is strongly encouraged that you KEEP that letter/coverage proof as you may need it if you later decide to enroll in a Medicare plan that includes Prescription Drug Coverage.