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.
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.
- Medicare Creditable Coverage. MedicareFAQ.com.