PROOF OF CREDIBLE COVERAGE
If you enroll in one of the plans approved by Medicare which offers prescription drug coverage, you may need to provide a copy of your Proof of Credible Coverage Notice to show you're not required to pay a higher premium amount.
To request a copy of your Proof of Credible Coverage Notice, contact the Caterpillar Benefits Center at 1-877-228-4010 Mon-Fri, 8 a.m.-6 p.m. (Central time).
For more information about Medicare prescription drug coverage:
For people with limited income and resources, extra help paying for a Medicare prescription drug plan is available. For more information, visit SSA online at socialsecurity.gov or call 800-772-1213 (TTY 800-325-0778).
FREQUENTLY ASKED QUESTIONS - MEDICARE PART D ENROLLMENT
If I don’t enroll (or cancel my enrollment) in Medicare Part D to keep my Caterpillar benefits, will I have to pay more in the future if I want to use Part D instead of Caterpillar?
If you are enrolled in the Caterpillar plan, that is considered by the government as having “creditable coverage”. If at any time in the future you decide to enroll in Medicare Part D instead of your Caterpillar coverage, simply provide the enclosed “Proof of Creditable Coverage” documents to Medicare (which were originally mailed to all employees and retirees November 1, 2005) and you will not pay a premium penalty. The premium penalty is for individuals who do not have any coverage and don’t sign up during the enrollment period defined by the government.
Why did the government create Medicare Part D if I am not supposed to use it?
Medicare Part D was designed to provide drug benefits to individuals who have no current coverage or a plan that provides very limited drug benefits. The Caterpillar healthcare plan provides prescription drug benefits that generally are better than the coverage under Medicare Part D. Participating in both the Caterpillar healthcare plan and Medicare Part D can result in higher out-of-pocket costs for you.
What is the advantage of keeping my Caterpillar healthcare benefits rather than switching to only Medicare coverage?
The Caterpillar prescription drug plan is included in overall Caterpillar healthcare coverage, which also provides you with vision and dental benefits not covered under the Medicare plans.
Is there a deductible for Medicare Part D?
Yes. The plan design for Medicare Part D includes deductibles and co-insurance amounts.
Should I drop my Medicare Part B coverage?
No. You should keep Medicare Part B as your primary insurance, even if you are electing to keep Caterpillar health and prescription drug coverage.
Will it save me more money to have both prescription drug coverage through Caterpillar and Medicare?
No. There is no coordination of benefits for prescription drugs. So accepting Medicare Part D will not “supplement” your current prescription drug coverage. Choosing to be a part of both plans will more than likely result in more out-of-pocket costs for you. We do not recommend participating in both. Retirees should choose either their Caterpillar plan OR Medicare Part D.
Why is the government offering Medicare Part D?
The government is trying to assist uninsured older individuals to help them with the rising cost of prescription drugs.
Why shouldn’t I enroll in Medicare Part D?
We encourage those with Caterpillar insurance to review the information that Medicare sends, and compare it to your Caterpillar drug plan. In most instances, the Caterpillar plan provides more cost-effective, comprehensive coverage.