800.334.1330
254.773.1330
fax 254.774.7652
4912 Midway Drive
Post Office Box 6130
Temple, TX 76503-6130
www.carehealthplan.com
November 13, 2007
NOTICE OF CREDITABLE COVERAGE
Important Notice
from the
Consolidated Associations of Railroad Employees (CARE)
About Your Prescription Drug Coverage and Medicare
PLEASE READ THIS ENTIRE NOTICE CAREFULLY
before making a decision about your drug coverage.
The annual prescription drug maximum for Plan #4000 has been increased to $2500 for plan year 2008. As a result, it has been determined that the prescription drug coverage offered by this plan is on average, for all plan participants, expected to pay out as much as the standard Medicare prescription drug coverage will pay. Therefore, beginning January 1, 2008, because your prescription drug coverage with CARE Plan #4000 is considered to be creditable prescription drug coverage, you can keep this coverage and not pay a penalty if you later decide to enroll in a Medicare prescription drug plan. As a reminder, Plan #4000 will continue to provide you with supplemental coverage to your Medicare Part A and Part B in addition to your prescription drug coverage.
You can join a Medicare-sponsored Part D drug plan when you first become eligible for Medicare and each year from November 15th through December 31st. You should know that if you drop or lose your coverage with CARE Plan #4000 and go 63 continuous days without prescription drug coverage that is at least as good as Medicare’s prescription drug coverage, your premium may go up by at least 1% of the base individual premium per month for every month that you did not have that coverage. You may pay that higher premium (a penalty) as long as you have Medicare-sponsored Part D drug coverage. However, if you lose creditable prescription drug coverage, through no fault of your own, you will be eligible for a sixty (60) day Special Enrollment Period (SEP) because you lost creditable coverage to join a Part D drug plan.
Therefore, as a reminder, should you choose to join a Medicare-sponsored Part D drug plan at a later date and follow Medicare’s enrollment guidelines as stated in the previous paragraph, you will not incur a penalty due to the fact that CARE Plan #4000 is considered to be creditable prescription drug coverage for 2008.
More detailed information about Medicare plans that offer prescription drug coverage is now available in the "Medicare & You 2008" handbook from Medicare.
For people with limited income and resources, extra help paying for a Medicare prescription drug plan is available. Information about this extra help is available from the Social Security Administration (SSA). For more information about this extra help, visit SSA online at www.socialsecurity.gov or call them at 1-800-772-1213 (TTY 1-800-325-0778).
Contact the Consolidated Associations of Railroad Employees (CARE) for further information at 1-800-334-1330.
REMEMBER: Keep this notice. If you enroll in a Medicare-approved prescription drug plan after December 31, 2007, you may need to provide a copy of this notice when you join to show that you are not required to pay a higher premium amount.
NOTE: You may receive this notice at other times in the future such as before the next period during which you can enroll in Medicare prescription drug coverage, and if the coverage available under the CARE Plan changes. You may also request a copy of this notice.
Date: November 13, 2007
Name of Entity / Sender: Consolidated Associations of Railroad Employees (CARE)
Contact – Position / Office: Consolidated Associations of Railroad Employees (CARE)
Address: P. O. Box 6130, 4912 Midway Drive, Temple, Texas 76503-6130
Phone Number: (254) 773-1330 or 1-800-334-1330