Creditable Prescription Drug Coverage

I want to enroll in the $2,700 or $5,000 Deductible PPO but I was told that these plans don’t provide Creditable Coverage.

The SMU $2,700 and $5,000 Deductible medical options don’t provide “creditable prescription drug coverage” when an individual becomes Medicare eligible.  The reason is that these two medical options provide no prescription drug coverage until you satisfy the deductible.   If you enroll in one of these plans and later retire, Medicare will look back at your SMU medical coverage beginning at age 65.  They will determine that you did not have creditable coverage and you will be assessed a "late enrollment" penalty.  Click here for additional information.

Who can participate in a HSA?

Individuals who are covered by a High Deductible Health Plan (HDHP) may participate in a HSA.  The SMU $2,700 and $5,000 Deductible PPO plans are High Deductible Health Plans.  Individuals may not participate in a HSA if they are:

  • Covered under a spouse's employer's health plan that is not a HDHP
  • Covered by Medicare (Part A and/or Part B)
  • Covered under a health FSA or HRA

Click here for additional information.