What is Creditable Coverage?
Creditable coverage is coverage from a plan other than a Medicare Part D plan, that offers prescription drug coverage as good as or better than Medicare Part D coverage. If you currently have a prescription drug coverage that is considered creditable coverage, you may keep your coverage and wait to enroll in Part D. If you decide later to enroll in Part D, you will not have to pay a late enrollment penalty.
Creditable coverage is evidence that you have had continuous health insurance. Companies are required to issue creditable coverage statements when your insurance terminates. Your next insurance company will ask for evidence of creditable coverage to determine if you are subject to pre-existing condition limitations of coverage.
Creditable coverage is coverage from a plan other than a Medicare Part D plan that offers prescription drug coverage as good as or better than Medicare Medicare Part D coverage. If you currently have a prescription drug coverage that is considered creditable coverage, you will not pay the late enrollment penalty if you decide to enroll in Medicare Part D in the future.
The concept of creditable coverage is that individuals should be given credit for previous health coverage when moving from one employer group health plan to another, from an employer group health plan to an individual policy, or from certain kinds of individual coverage to an employer group health plan. Most health coverage is creditable coverage, including prior coverage under a group health plan (including a governmental or church plan) , health coverage (either group or individual) , Medicare, Medicaid, a military-sponsored health care program such as TRI-CARE, a program of the Indian Health Service, a State high risk pool, the Federal Employees Health Benefit Program, a public health plan, and a health benefit plan provided for Peace Corps members, a stand alone prescription drug plan, or a foreign country’s government health plan.
