The Inflation Reduction Act (IRA) made a number of favorable changes to prescription drug benefits available under Medicare Part D and through a Medicare Advantage plan starting in 2025 and continuing into 2027.
Each year, we are required to assess whether the prescription drug benefits we offer to employees are “creditable” according to standards set forth by the Centers for Medicare and Medicaid Services (CMS). Prescription drug plans are creditable if they are expected to pay, on average, at least as much as the standard Medicare Part D plan. As a result of the IRA, changes to the Medicare Part D program may cause some plans that have been previously creditable to become non-creditable beginning in 2027.
These changes to Medicare Part D have resulted in Plan C/HSA no longer being creditable as of January 1, 2027. Plan A and Plan B will continue to be creditable in 2027.
Annual notices regarding creditable coverage for 2027 are below:
Medicare Part D — Notice of Creditable Coverage for 2027 Plan Year for Plan A and Plan B
Medicare Part D — Notice of Non-Creditable Coverage for 2027 Plan Year for Plan C/HSA
For those eligible but not enrolled in Medicare Part D: The change of Plan C/HSA’s creditable status to non-creditable will create a two-month special enrollment period into Medicare Part D.
For those who will become eligible for Medicare in 2027: Medicare-eligible individuals that enroll in our non-creditable plan option must make some key decisions about their prescription drug coverage in 2027 and beyond. Please review THIS CHART provided by our benefits consultant outlining how your 2027 plan election might impact your Medicare choices. Each individual should consider their own circumstances and the appropriate choice for their family.
For more information about Medicare, enrollment periods, and late enrollment penalties, please visit Medicare & You. Truman employees may also utilize our Medicare Assistance Program through SGIA for guidance.
If you have questions about this communication, please contact Human Resources at 660-785-4031 or hrstaff@truman.edu.