Are there penalties if an employer/union plan does not send the required notices to employees or retirees?
The MMA does not include a specific penalty for failure to provide the required notices. If however the employer/union is requesting the Retiree Drug Subsidy (RDS) from CMS the required attestation that all applicable rules will be followed would require that the appropriate notices are sent to Medicare affected members. If the Medicare member can prove that they did not get adequate notice that their employer plan was not creditable them CMS may not apply the premium penalty with when the member enrolls in Part D.
Related Questions
- If several employees are covered under the employer’s plan, are all the employees required to elect to participate in the settlement initiative?
- Are there penalties if an employer/union plan does not send the required notices to employees or retirees?
- What if the employers plan covers union employees or retirees?
