- It’s important to understand the concept of creditable coverage. Creditable coverage refers to health insurance that is at least as good as Original Medicare. This includes employer-sponsored insurance, individual insurance, and other types of coverage. If the beneficiary later decides to switch back to Original Medicare, they may have to pay a higher premium for Part B if they went more than sixty-three days without creditable coverage. If a beneficiary is unsure about their creditable coverage status, they can contact their insurance provider to ask whether their coverage is creditable.
- It’s also a good idea to keep track of any letters received from an insurance provider about the beneficiary’s creditable coverage status. These letters are called “creditable coverage disclosures,” and they should be kept in a safe place in case they are needed later.
- If a beneficiary is considering switching to a Medicare Advantage plan during the Medicare Advantage Disenrollment Period (MADP), it’s a good idea to speak with a Medicare advisor or an insurance provider to understand the potential consequences of losing creditable coverage. They can help make an informed decision that is right for the beneficiary.
