Fredericks Benefits
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Redlands, CA 92374

September 2007 Newsletter 

Bulletin Briefs . . . . . . . . .
 
DHS Regulation ‘On Hold’
 
A federal court has temporarily barred enforcement of a Homeland Security rule regarding employer responses to Social Security no-match letters. No-match letters refer to notifications sent to employers when Social Security numbers submitted by employees do not match those in the SSA database. For now, employers need to continue to do their best to make sure their employees are legal.
 
Medicare Noncreditable Coverage Notice Contains Error 
 
Individuals with noncreditable coverage who do not enroll in Medicare Part D during their initial enrollment period will have to pay higher premiums permanently when they finally enroll. The model notice on the CMS website says they have 63 days when coverage ends to enroll without being subject to the late enrollment penalty, which is not the case. CMS is aware of the problem and intends to update the noncredit notice, but in the meantime suggests that plan sponsors simply remove the statement from the model notice.

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