Definition. Prescription drug coverage that pays on average at least as much as Medicare's standard Part D coverage. Going 63 days or more in a row without Part D or creditable coverage after your Initial Enrollment Period can lead to a Part D late enrollment penalty.
What it means
Your employer, union or insurer must tell you each year whether your drug coverage is creditable, usually in a notice sent before October 15. Keep those notices: if Medicare later charges a penalty, they prove you had creditable coverage.
Part B works differently. What lets you delay Part B without a penalty is group health coverage based on current employment, yours or your spouse's. COBRA, retiree coverage and individual Marketplace plans don't count for the Part B special enrollment period, even if their drug coverage is creditable for Part D.
In Oregon
Oregon public retirees should plan ahead: PEBB retiree coverage ends the last day of the month before the month you become eligible for Medicare (OAR 101-050-0010), and OEBB medical coverage for early retirees ends the last day of the month before your Medicare effective date (OAR 111-050-0015). Because that coverage stops, it can't carry you past your Medicare eligibility. See PEBB and Medicare and OEBB and Medicare.
Sources
- Medicare.gov — Creditable drug coverage
- Medicare.gov — Working past 65
- Medicare.gov — Avoid late enrollment penalties
- Oregon Administrative Rules — OAR 101-050-0010, PEBB retiree coverage
- Oregon Administrative Rules — OAR 111-050-0015, OEBB early retiree coverage
Frequently asked questions
Is COBRA creditable coverage?
For Part B, no: COBRA doesn't give you a Part B special enrollment period, so sign up for Part B when you first can. For Part D, COBRA drug coverage may or may not be creditable; check the plan's yearly notice.
Is VA drug coverage creditable for Part D?
Yes. VA prescription coverage counts as creditable, so veterans who rely on it don't get a Part D late enrollment penalty if they join Part D later.
Medicare in your Oregon county
Plans, local agents and help, county by county: Multnomah · Washington · Clackamas · Lane · Marion · Jackson · Deschutes · Linn · Douglas · Yamhill · Benton · Polk · Josephine · Umatilla · Klamath · Coos · Columbia · Lincoln · Clatsop · Malheur · All 36 counties →
