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Baldwin Bulletin

Revised Simplified Determination Method for 2026 Medicare Part D Creditable Coverage

The Baldwin Group
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Updated: May 2, 2025
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1 minute read

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.

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