This notice is most relevant for people who are eligible for Medicare or those who soon will be eligible for Medicare. Medicare prescription drug coverage became available in 2006 to everyone who is eligible for Medicare. All Medicare prescription drug plans must provide at least a standard level of coverage set by Medicare. Some plans might also offer more coverage for a higher monthly premium.

The Trust has determined that the Trust prescription drug coverage for Trust members and their dependents (Full-Time/Part-Time Option 1, Part-Time Option 2, substitute teachers and self-pay continuation) enrolled in the following Trust plans is, on average for all plan participants, expected to pay out at least as much as the standard Medicare prescription drug coverage will pay:

Therefore, if you are or become eligible for Medicare, you can keep the Trust's plan coverage and not pay a penalty if you later decide to enroll in a Medicare prescription drug plan.

Individuals can first enroll in a Medicare prescription drug plan when they first become eligible for Medicare and each year from October 15 through December 7. However, because you have existing prescription drug coverage through the Trust that, on average, is as good as Medicare coverage, you can choose to keep the Trust's prescription drug coverage as long as you are eligible for it, and join a Medicare prescription drug plan later. You may also be eligible for a special enrollment period to sign up for a Medicare prescription drug plan at the time you lose eligibility for Trust coverage.

If you decide to enroll in a Medicare prescription drug plan, you may also continue your Trust prescription drug coverage. The Trust coverage will continue to pay primary as it had before you enrolled in a Medicare prescription drug plan. If you decide to enroll in a Medicare prescription drug plan and drop your Trust coverage, be aware that you will drop both medical and prescription drug coverage and Medicare will be your only payer. If you are eligible, you can re-enroll in Trust coverage at annual enrollment or if you have a special enrollment event.

You should also know that if you drop or lose your coverage with the Trust and don't promptly enroll in Medicare prescription drug coverage after your Trust coverage ends, you may pay more to enroll in Medicare prescription drug coverage later. If you go 63 days or longer without prescription drug coverage that's at least as good as Medicare's prescription drug coverage, your monthly premium for a Medicare prescription drug plan will go up at least 1% per month for every month after your initial enrollment period that you did not have that coverage. For example, if you go 19 months without coverage, your Medicare prescription drug plan premium will always be at least 19% higher than what most other people pay. You'll have to pay this higher premium as long as you have Medicare prescription drug coverage. In addition, you may have to wait until the following November to enroll.

The Trust will provide you with a notice of creditable coverage. You may receive this notice at other times in the future, such as before the next period you can enroll in Medicare prescription drug coverage, if this coverage changes, or upon your request.