Notice of Creditable Prescription Drug Coverage

The new Medicare prescription drug program, which is known as Part D, will begin January 1, 2006. Under the new program, OP&F is required to notify benefit recipients that the drug coverage under the Ohio Police & Fire Pension Fund Health Care Plan is “creditable” and that OP&F will continue to offer eligible members and their dependents prescription drug coverage in 2006.

Prescription drug coverage provided by a plan like the OP&F plan is “creditable” if, on average for all participants, the plan is expected to pay out at least as much as the standard Medicare Part D coverage would pay. OP&F’s actuarial consultant has verified that the coverage under the OP&F health plan is creditable.

It is important for individuals to have either Part D coverage or plan–provided creditable drug coverage, such as prescription drug coverage sponsored by OP&F, since a penalty applies to people who enroll late in Medicare Part D or who go without Part D or creditable coverage for 63 or more days. People who are now eligible for Part D have until May 15, 2006 to enroll in Part D, unless they are in a creditable coverage plan. People who are now in a creditable coverage plan, but who later lose or drop that coverage, also will pay a penalty if they do not enroll in Part D or another creditable coverage plan within 63 days after their drug coverage ends. If the penalty applies, your monthly premium under Medicare Part D will go up at least 1% per month for every month after May 15, 2006 that you did not have either Part D or creditable coverage. You also may have to wait until the next open enrollment period (November 15 – December 31, 2006) to enroll.

If your income is limited (less than $14,355 if you are single or $19,245 if you are married), extra help paying for a Medicare prescription drug plan is available. For more information about this extra help, contact the Social Security Administration at www.socialsecurity.gov or call them at 800–772–1231 (TTY 800–325–0778).

Because the OP&F coverage is creditable, in most situations you do not need to purchase Part D coverage as well. If you do purchase Part D, you will lose your prescription drug coverage under the OP&F plan. You will have the right to re–enroll in the OP&F plan in 2006 only and will have limited rights to re–enroll in 2007.

You will receive a creditable coverage notice each year. You will receive a new notice if the OP&F coverage is changed so that it is no longer creditable. You may request a copy of this notice at any time by calling OP&F’s Customer Service unit at 800–860–9599.

Please do not discard this notice, as you may need it as proof of creditable coverage.