Creditable Coverage Notice Prescription Drug Coverage and Medicare Part D

Publication Date: 08/27/2025
Document Type: Informational Pages
Sponsor: Employee Benefits

Summary
Important Notice About Your Prescription Drug Coverage and Medicare

The Centers for Medicare & Medicaid Services (CMS) require that prescription drug plans offer coverage with an “actuarial value” at least equal to the standard Medicare Part D benefit, requiring employers to disclose annually the creditable status of their plans to CMS and their Medicare-eligible members.

Please read this notice carefully and keep it where you can find it. This notice has information about your current prescription drug coverage with the City of St. Louis and about your options under Medicare’s prescription drug coverage. This information can help you decide whether or not you want to join a Medicare drug plan. If you are considering joining, you should compare your current coverage, including which drugs are covered at what cost, with the coverage and costs of the plans offering Medicare prescription drug coverage in your area. Information about where you can get help to make decisions about your prescription drug coverage is at the end of this notice.

There are two important things you need to know about your current coverage and Medicare’s prescription drug coverage:

1. Medicare prescription drug coverage became available in 2006 to everyone with Medicare. You can get this coverage if you join a Medicare Prescription Drug Plan or join a Medicare Advantage Plan (like an HMO or PPO) that offers prescription drug coverage. All Medicare drug plans provide at least a standard level of coverage set by Medicare. Some plans may also offer more coverage for a higher monthly premium.

2. The City of Saint Louis has determined that the prescription drug coverage offered by The City of Saint Louis Plans is, on average for all plan participants, expected to pay out as much as standard Medicare prescription drug coverage pays and is therefore considered Creditable Coverage. Because your existing coverage is Creditable Coverage, you can keep this coverage and not pay a higher premium (a penalty) if you later decide to join a Medicare drug plan.

View or print the notice at the link below.