Creditable coverage

Creditable coverage refers to healthcare coverage provided by an employer, union, or other entity that meets or exceeds the minimum standards set by Medicare. Individuals with creditable coverage may be eligible for special enrollment periods and may not face penalties for late enrollment in Medicare Part D or Part B. Employers are required to notify their employees about the creditability of their health coverage each year. Understanding creditable coverage is essential for individuals nearing Medicare eligibility age to make informed decisions about their healthcare coverage options and avoid potential penalties for late enrollment in Medicare plans.