Creditable Coverage
Creditable coverage is prescription drug coverage that's at least as good as Medicare Part D. If you have it, you can delay Part D enrollment without penalty.
Understanding Creditable Coverage
Creditable coverage is health insurance that's expected to pay, on average, at least as much as standard Medicare coverage. Having creditable coverage allows you to delay Medicare enrollment without penalty.
For Part B, creditable coverage typically means group health coverage from an employer with 20 or more employees (where you or your spouse actively works).
For Part D, creditable coverage means prescription drug coverage that's at least as good as Medicare Part D. Your employer must notify you annually whether your drug coverage is creditable.
Keep documentation of your creditable coverage periods. You'll need to provide this information when you eventually enroll in Medicare to avoid late enrollment penalties.
Related Terms
Premium
A premium is the monthly payment you make for your Medicare coverage. You pay premiums for Part B, Part D, Medicare Advantage, and Medigap plans.
Part D
Medicare Part D is prescription drug coverage. You can get it through a standalone Prescription Drug Plan (PDP) or through a Medicare Advantage plan that includes drug coverage.
Initial Enrollment Period (IEP)
The Initial Enrollment Period is the 7-month window when you first become eligible for Medicare, usually around your 65th birthday. It includes 3 months before, the month of, and 3 months after your birthday.
Special Enrollment Period (SEP)
A Special Enrollment Period is a time outside of the normal enrollment periods when you can make changes to your Medicare coverage due to certain life events like moving or losing other coverage.
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