NEW NOTICE REQUIREMENTS FOR EMPLOYER DRUG BENEFITS
Notices Must Be Issued by November 15

Employers that sponsor prescription drug benefit plans have new notice requirements. The Medicare Prescription Drug, Improvement and Modernization Act of 2003 (MMA) created Medicare Part D - a new prescription drug benefit for Medicare-eligible individuals. Employers must notify participants in their prescription drug coverage (which may include active employees, retirees, and their dependents) about whether the employer's prescription drug coverage is as good, or better than, the new Medicare Part D drug benefit. This notice will allow the participants to determine whether to enroll in Medicare Part D or remain under the employer's drug coverage. Employers must also notify the Centers for Medicare and Medicaid Services about the status of their drug coverage. Recent guidance sheds light on how and when these notices must be provided.

The MMA also encourages employers to adopt and maintain prescription drug coverage for retirees. Employers that offer prescription drug coverage to retirees may be eligible for tax-free payments from the federal government to help subsidize the coverage.

For more information about the new notice requirement and the retiree drug subsidy, go here.

If you have questions about this new law and how it may affect your group health plan, please call or e-mail your contact in Ice Miller's Employee Benefits Group.  If you do not have a contact at Ice Miller, please contact Linda Rowings, Christopher Sears, or Stephanie Smithey, or visit us at www.icemiller.com to view a complete listing of our attorneys.