Questions about the effects of A type of retirement group plans

[vic120]

I have not run into this for at least 5 years but a referral source needs me to help with this situation

Client has the type of group retirement plan where they pay only up to $5000 in drug cov, When that runs out they no longer pay

I kind of remember issues with this but I am not sure I remember everything correctly

Do these plans not count as credible cov is there a penalty if they purchase a part D

is this either or where they cannot have both I pretty sure they cant but want to be 100% accurate in the info I give

 

[policywunk]

I have not run into this for at least 5 years but a referral source needs me to help with this situation

Client has the type of group retirement plan where they pay only up to $5000 in drug cov, When that runs out they no longer pay

I kind of remember issues with this but I am not sure I remember everything correctly

Do these plans not count as credible cov is there a penalty if they purchase a part D

is this either or where they cannot have both I pretty sure they cant but want to be 100% accurate in the info I give

Most likely not creditable since part D has no limit.He should get annual letters from carrier telling him if it is creditable or do a three way call to rx plan.

 

[kgmom219]

I’m 100% sure it’s not creditable and I still wouldn’t answer the question. Send them back to the plan administrator and get the answer in writing from them.

 

[LostDollar]

Most likely not creditable since part D has no limit.He should get annual letters from carrier telling him if it is creditable or do a three way call to rx plan.

It's been awhile since I have been an employee and received those letters, but I thought the employer was the one obligated to send them out.