Letter of Creditable Rx Coverage

[GreenSky]

I told him to expect a penalty. He acted as though it was first he had ever heard of it. He has received his PDP card. He has not gotten word of the penalty yet.

It took about 9 months for one of my clients to get a bill.

Rick

 

[retread]

It took about 9 months for one of my clients to get a bill.

Rick

Yeah, figures... but the overriding concern I had, is whether or not CMS will instigate a collection on non-enrollees. I didn't think it through until now, and your response hit me. Of course they wouldn't.... The client instigates the process only when they join. Intelligence strikes every so often at my house....

The next concern was the escalating amount due when they are penalized. This is resolved with the calculation of the penalty by rule and the agent's explanation to the client should they continue to delay.

I have already got some clients calling with letters about a penalty with no amount mentioned. I am just glad I was upfront with them when I presented my offer. I always make it clear to those who have never joined a PDP that by choosing a MAPD they were exposing themselves to the penalty and how much I estimated it to be.

The fact that the PDP is embedded can slide by a lot of seniors and I wanted to bring this out.
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Apparently the penalty process starts with a letter to the client that they are subject to the penalty. Then at some time later the amount is presented. If CMS takes several months to tell them how much, I expect it will be retroactive to Jan 1st of that year, so it will be more than I estimate for the months to date.