Creditable health coverage is health coverage that lets you delay or drop Medicare Part B without penalty. Likewise, creditable prescription drug coverage is drug coverage that lets you delay or drop part D without penalty.[1]

In general, these plans are considered creditable because they offer at least the same benefits as Medicare.

Examples of entities who might offer creditable health and or drug coverage include:

  • Group health plans (employer-based health plans)
  • Coverage through the Department of Veterans Affairs
  • Coverage through Unions
  • Coverage through Federal, State, and Local governments

If you have creditable health and/or drug coverage then you can delay or drop Part B and/or D until you no longer have access to that coverage. Losing that coverage will then trigger a Special Enrollment window in which you can sign up for Part B and/or D.

FACT: The Medicare Modernization Act (MMA) requires insurers to notify Medicare-eligible policyholders whether their coverage is considered creditable coverage.


  1. Medicare Creditable Coverage.