Medicare Part D Information

Useful information for Brokers about Medicare Part D.

Creditable Coverage

Most entities that currently provide prescription drug coverage to Medicare-eligible beneficiaries must disclose whether the entity’s coverage is “creditable prescription drug coverage.” A disclosure is required whether the insurer is primary or secondary to Medicare.
>>Read the definition of an entity.

Disclosure of whether prescription drug coverage is creditable provides Medicare-eligible beneficiaries with important information relating to their Medicare Part D enrollment. For instance, beneficiaries who are not covered under creditable prescription drug coverage – and who choose not to enroll before the end of their initial enrollment period for Medicare Part D – will likely have to pay a higher premium on a permanent basis if they subsequently enroll in Medicare Part D.

Employer Subsidy

Under the Medicare Modernization Act of 2003, the Federal Government – through the Centers for Medicare & Medicaid Services (CMS) – is encouraging employer groups to continue offering prescription drug benefits to their retirees by offering an employer subsidy of 28% of prescription drug claims.

To meet this goal, CMS has created a Retiree Drug Subsidy (RDS) program website to assist with the completion of the application required to qualify for the subsidy. This site offers many tools and resources to provide you with everything from general information about the RDS Program to specific instructions and assistance during the application period and afterward.

To learn more about the subsidy, visit the CMS website or call the RDS Help Line at (877) RDS-HELP or (877) 737-4357. TTY for the hearing impaired: (877) RDS-TTY0, or (877) 737-8890.


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