Oct. 15 Deadline for Medicare Part D Coverage Notices
Employers must notify Medicare-eligible policyholders if their prescription drug coverage is credible or not.
2025 brings significant change to the determination of credibility.
Here's the math:
.17 (17% penalty) × $34.70 (Base beneficiary premium) = $5.90
$5.90 = Mrs. Martinez's monthly late enrollment penalty for 2025
Who Must Comply
The disclosure requirements apply generally to employers sponsoring group health plans that offer prescription drug coverage to Medicare-eligible individuals.
Model notices/templates
These model notices may be used to satisfy this requirement, issued by the Centers for Medicare & Medicaid Services.
Medicare Part D – Creditable Coverage Disclosure Notice Template - [View]
Non-Creditable Coverage Disclosure Notice Template - [View]
Information Required
Notifies Medicare-eligible individuals whether the plan's prescription drug coverage is creditable coverage, meaning the coverage is expected to pay, on average, as much as the standard Medicare prescription drug coverage.
Note: Individuals who do not maintain creditable coverage for 63 days or longer following their initial enrollment period for Medicare Part D may be required to pay a late enrollment penalty. Accordingly, this information is essential to the decision to enroll in a Medicare Part D prescription drug plan.
Who it must be provided to
Medicare-eligible active employees and their dependents
Medicare-eligible COBRA individuals and their dependents
Medicare-eligible disabled individuals covered under the prescription drug plan
Any retirees and their dependents
Who it must be provided by
Employers who sponsor group health plans that offer prescription drug coverage to Medicare-eligible individuals.
When it is Due
Prior to the annual enrollment period for Medicare Part D that begins on Oct. 15th
Prior to an individual's initial enrollment period for Medicare Part D
Prior to the effective date of enrolling in the employer's prescription drug plan and upon any change that affects whether the coverage is credible
Upon request by the individual
Online disclosure to the Centers for Medicare & Medicaid Services is also required annually, no later than 60 days from the beginning of a plan year, within 30 days after termination of a prescription drug plan, or within 30 days after any change in creditable coverage status.
2024 Midyear Benefits Trends to Monitor
The U.S. Department of Labor’s (DOL) Occupational Safety and Health Administration (OSHA) recently announced an unofficial version of the proposed standard to protect workers from heat injury and illness. If finalized, the new standard would apply to all employers conducting indoor and outdoor work in all general industry, construction, maritime, and agricultural sectors where OSHA has jurisdiction, subject to limited exceptions. According to OSHA, the proposed rule would apply to approximately 36 million workers.
Background
The U.S. Bureau of Labor Statistics reported that almost 500 workers died from heat exposure in the United States from 2011-22, along with nearly 34,000 estimated work-related heat injuries and illnesses resulting in days away from work. If finalized, the proposed rule would be the first federal regulation specifically focused on protecting workers from extreme heat. The official version of the proposed rule will soon be published in the Federal Register.
Employer Obligations
The unofficial version of the proposed rule includes a number of safeguards employers would be required to implement. For example, the proposed standard includes requirements for:
- Identifying heat hazards
- Developing heat illness and emergency response plans
- Providing training to employees and supervisors
- Implementing work practice standards, including rest breaks, access to shade and water, and heat acclimatization for new employees
Once published, the proposed rule will undergo a 120-day comment period and subsequent review before it is finalized. If finalized, employers must comply with its requirements within 150 days of publication. Therefore, if the rule is finalized, employers will not be subject to its requirements until 2025. Employers may take steps now to prepare to comply with the standard. However, the proposed standard is likely to face pushback, so employers should monitor for updates and potential legal challenges.
[New Case Study] - JV Manufacturing Transforming the Employee Experience with Motion Connected
We are excited to share our latest success story with you! Our new JV Manufacturing Case Study highlights the transformative impact of our employee engagement and wellbeing platform on JV Manufacturing.
This case study showcases how our comprehensive solutions have driven significant improvements in employee wellness and organizational outcomes.
- Boosted Program Participation: 88% of users and their spouses are actively engaged in the program.
- A More User-Friendly Experience: keeping program goals clear and tracking easy to navigate
- Happy Employees: 95% of participants were satisfied or very satisfied with the program.
Why This Matters
As organizations continue to navigate the challenges of employee engagement, JV Manufacturing's story serves as an inspiring example of what can be achieved with the right tools and support.
To explore the full details of JV Manufacturing's success and learn how Motion Connected can help your organization achieve similar results, read the complete case study on our website.
Join us in creating a healthier, more engaged workplace. Together, we can make a difference.
As organizations continue to navigate the challenges of employee engagement, JV Manufacturing's story serves as an inspiring example of what can be achieved with the right tools and support.
To explore the full details of JV Manufacturing's success and learn how Motion Connected can help your organization achieve similar results, read the complete case study on our website.
Join us in creating a healthier, more engaged workplace. Together, we can make a difference.
Reports Find Majority of Employees Likely to Stay in Current Job
NLRB Voluntarily Withdraws Joint-employer Rule Appeal
On July 19, 2024, the National Labor Relations Board (NLRB) voluntarily dismissed its appeal of the U.S. District Court for the Eastern District of Texas decision vacating the NLRB’s 2023 joint-employer rule. Thus, the decision of the Eastern District of Texas will be final.
The rule, which had been set to take effect on March 11, 2024, would have expanded the types of control over job terms and conditions that trigger joint employment. The NLRB stated it would like to consider the issues identified in the Eastern District of Texas’ decision and options for addressing outstanding joint-employer matters. As a result of the Eastern District of Texas’ ruling and the NLRB’s decision to withdraw its appeal, the former 2020 joint-employer rule remains in effect and calls into question the future status of the 2023 rule.
Background on the Joint-employer Standard
Joint-employment situations can happen when two or more employers share personnel hiring, supervision, and management practices. When a joint-employment status exists, joint employers are equally responsible for compliance with applicable laws and regulations.
The 2023 joint-employer standard sought new criteria for determining joint-employer status as applied to labor issues under the National Labor Relations Act. It would have rescinded the existing 2020 joint-employer standard and replaced it with a more inclusive law, making it easier for employers to be classified as joint employers.The 2020 standard considers the “substantial direct and immediate control” employers have over essential terms and conditions of employment for individuals who are employed by another organization.
Impact on Employers
Employers should ensure they rely on the 2020 joint-employer standard to determine where joint employment exists. Employers should continue to monitor the NLRB’s actions related to the joint-employer standard, as the board indicated it would consider its options for addressing outstanding joint-employer matters after voluntarily dismissing its appeal to the 5th U.S. Court of Appeals.
Understanding Management Liability Insurance
Running a business entails a multitude of responsibilities and decisions. Whether they are making strategic choices or overseeing daily operations, business leaders are exposed to numerous risks. Management liability insurance consists of a package of policies designed to cover the exposures businesses and their leaders face. It is primarily designed for privately held firms; nonprofit organizations; and small, publicly traded companies. Larger businesses generally purchase their management liability insurance on a standalone basis.
Management liability insurance is a crucial component of an organization’s insurance portfolio, as it can provide coverage for a business and its leaders.
It’s crucial for business owners to understand the coverage generally included in a management liability insurance policy and why each is important for a business to have.
Coverage in a Management Liability Package
The coverage in a management liability policy varies based on the insurer, but it typically includes directors and officers insurance (D&O), employment practices liability insurance (EPLI), fiduciary liability insurance, and crime insurance.
- D&O—This insurance covers a business’s directors and officers for lawsuits filed against them regarding their position-related decisions or actions. Examples of potential claims include reporting errors, misuse of funds, inaccurate disclosures, and other management errors and omissions. Having D&O insurance can cover these claims’ associated defense costs and legal expenses, which can safeguard the personal assets of an organization’s directors and officers. Additionally, if an organization itself is sued, D&O insurance may offer coverage. By offering this protection, a D&O policy can also serve as a recruitment tool to attract executive and board talent.
- EPLI—This coverage financially protects against employment-related lawsuits, such as those involving allegations of discrimination, harassment, or wrongful termination. All organizations with employees are susceptible to these claims, no matter their size or their diligence and commitment to adhering to applicable employment laws. EPLI can help cover defense costs and legal expenses associated with these claims.
- Fiduciary liability insurance—This insurance offers coverage for claims that an employer breached their fiduciary duty by mismanaging an employee benefit plan. Allegations this insurance could respond to include improperly changing plan benefits, mismanaging plan assets, wrongfully denying benefits, or providing inaccurate plan advice. Fiduciary liability coverage can help cover defense and legal expenses related to these claims. It can also provide compensation to offset the benefit plan’s financial losses caused by these errors, omissions, or fiduciary duty breaches.
- Crime insurance—Even with robust security protocols and systems in place, businesses are still vulnerable to business-related crimes committed by employees. These can include theft, forgery, and embezzlement. Crime insurance can provide financial assistance if such unlawful activities occur.
Management liability insurance can provide organizations and their leaders with essential coverage for several exposures. Having the right policies in place is an integral part of a risk management strategy. Contact us for more resources.