May 1, 2025
Paul Van Brunt, Associate Director, Benefits Compliance
Recently, the Centers for Medicare & Medicaid Services (“CMS”) finalized a revised simplified determination method for creditable coverage determinations for plans years beginning in 2026. This important development comes as part of CMS’s ongoing efforts to streamline administrative methods and procedures for employers and plan sponsors, ultimately aiming to benefit both companies and their employees.
The revised method for simplified determination offers a more efficient and easier way for employers to determine whether their prescription drug coverage is at least as good as the standard Medicare Part D coverage, an analytic process known as a “creditable coverage determination”.
Employer Action Items
- Stay Updated on the New Procedure: Organizations should be familiar with the revised determination method. It is essential for the administration of efficient benefits management and related compliance assuredness. The CMS website, along with various CMS publications, offer rich resources to assist plan sponsors in staying abreast of these changes.
- Communicate the Changes: Inform employees about this change for 2026, and explain what the determination means for Medicare purposes and the creditable coverage status respecting their prescription drug coverage.
- Review Your Plan: Assess current prescription drug coverage as a result of the new determination method. Make necessary adjustments to ensure that the plan meets the requirements for creditable coverage in 2026.
Summary
CMS’s finalization of the revised simplified determination method for 2026 signals a fresh and efficient approach to creditable coverage determinations. It streamlines the process of submission and ensures employees receive appropriate prescription drug coverage. By understanding and implementing these changes, organizations not only comply with Medicare Part D regulations, but may effectuate the administration of their presecription drug programs in a more efficient and streamlined capacity.
Employers should stay proactive, clear in communication, and prepared for these new changes. Be reminded that the Baldwin Regulatory Compliance Collaborative is here to help you navigate these requirements, ensuring a smoother transition to the updated procedures. Your organization’s success is always front and center at The Baldwin Group.
Additional Information & Resources
For more information
We’re ready when you are. Get in touch and a friendly, knowledgeable Baldwin advisor is prepared to discuss your business or individual needs, ask a few questions to get the full picture, and make a plan to follow up.
This document is intended for general information purposes only and should not be construed as advice or opinions on any specific facts or circumstances. The content of this document is made available on an “as is” basis, without warranty of any kind. The Baldwin Insurance Group Holdings, LLC (“The Baldwin Group”), its affiliates, and subsidiaries do not guarantee that this information is, or can be relied on for, compliance with any law or regulation, assurance against preventable losses, or freedom from legal liability. This publication is not intended to be legal, underwriting, or any other type of professional advice. The Baldwin Group does not guarantee any particular outcome and makes no commitment to update any information herein or remove any items that are no longer accurate or complete. Furthermore, The Baldwin Group does not assume any liability to any person or organization for loss or damage caused by or resulting from any reliance placed on that content. Persons requiring advice should always consult an independent adviser.
The Baldwin Group offers insurance services through one or more of its insurance licensed entities. Each of the entities may be known by one or more of the logos displayed; all insurance commerce is only conducted through The Baldwin Group insurance licensed entities. This material is not an offer to sell insurance.