Have you completed the CMS Disclosure Requirement for Employer Health Plans?

Do you offer health coverage to your employees?  Does your group health plan cover outpatient prescription drugs?  If so, federal law requires you to complete an online disclosure form every year with information about your plan’s drug coverage.  You have 60 days from the start of your health plan year to complete the form.  So, if you have a calendar-yea health plan, this year’s deadline is March 1, 2019.


The Centers for Medicare and Medicaid Services (CMS) is a federal agency that collects data and administers various federal programs.  The agency utilizes the CMS online tool to collect information from employers about whether their group health plan’s prescription drug coverage is actuarially equivalent to Medicare’s Part D drug plans.  In other words, the group plan is considered creditable if its drug benefits are as good as or better than Medicare’s benefits.

To confirm whether your plan provides creditable or noncreditable coverage, check with your Preferred Benefits representative or the plan’s carrier. CMS provides guidance to help plan sponsors, carriers, and actuaries determine the plan’s status.

Deadline for Disclosure

All group health plans that include any outpatient prescription drug benefits, regardless of whether the plan is insured, self-funded, grandfathered, or nongrandfathered, must complete the CMS disclosure requirement.  There is no exception for small employers.

Completing the Disclosure Form

The CMS online tool is the only method allowed for completing the required disclosure.  From this link, follow the prompts to respond to a series of questions regarding the plan.  The link is the same regardless of whether the employer’s plan provides creditable or non-creditable coverage.

The entire process usually takes only 5 to 10 minutes to complete.  To save time, have the following information handy before you start filling in the form:

  1.  Information about the plan sponsor (employer; Name, address, phone number, and federal Employer Identification Number (EIN).
  2. Number of prescription drug options offered.
  3. Creditable/Noncreditable Offer: Indicate whether all options are creditable or noncreditable or whether some are creditable and others are noncreditable.
  4. Plan year beginning and ending dates.
  5. Estimated number of plan participants eligible for Medicare, if any.
  6. Date that the plan’s Notice of Creditable (or Noncreditable) Coverage was provided to participants.
  7. Name, title, and email address of the employer’s authorized individual completing the disclosure.

We suggest you print a copy of the completed disclosure to keep for your records.

About the Author:Mary Frank

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