Creditable Coverage Notice
Important Notice from
Alliance Health and Life Insurance Company (Alliance)
About Your Prescription Drug Coverage and Medicare
Please read this notice carefully and keep it where you can find it. This notice has
information about your current prescription drug coverage with Alliance and about your
options under Medicare’s prescription drug coverage. This information can help you
decide whether or not you want to join a Medicare drug plan. If you are considering
joining, you should compare your current coverage, including which drugs are covered at
what cost, with the coverage and costs of the plans offering Medicare prescription drug
coverage in your area. Information about where you can get help to make decisions about
your prescription drug coverage is at the end of this notice.
There are two important things you need to know about your current coverage and
Medicare’s prescription drug coverage:
1. Medicare prescription drug coverage became available in 2006 to everyone with
Medicare. You can get this coverage if you join a Medicare Prescription Drug Plan or
join a Medicare Advantage Plan (like an HMO or PPO) that offers prescription drug
coverage. All Medicare drug plans provide at least a standard level of coverage set
by Medicare. Some plans may also offer more coverage for a higher monthly
2. Alliance has determined that the prescription drug coverage offered by the HAP
Personal Alliance Plan is, on average for all plan participants, expected to pay out as
much as standard Medicare prescription drug coverage pays and is therefore
considered Creditable Coverage. Because your existing coverage is Creditable
Coverage, you can keep this coverage and not pay a higher premium (a penalty) if you
later decide to join a Medicare drug plan.
When Can You Join A Medicare Drug Plan?
You can join a Medicare drug plan when you first become eligible for Medicare and each year
from October 15
to December 7
However, if you lost your current creditable prescription drug coverage, through no fault of your
own, you will also be eligible for a two (2) month Special Enrollment Period (SEP) to join a
Medicare drug plan.
What Happens To Your Current Coverage If You Decide to Join A
Medicare Drug Plan?
If you decide to join a Medicare drug plan, your current Alliance coverage will be affected.
Coverage under the Alliance plan will be terminated. Dependents that are covered under your
current Alliance coverage may be able keep their coverage. Please contact Alliance for further
If you do decide to join a Medicare drug plan and drop your current Alliance coverage, be aware
that you may not be able to get this coverage back.