Creditable Coverage
Drug coverage that's at least as good as standard Part D — keeps you penalty-free if you delay Part D.
Full explanation
Creditable coverage is prescription drug coverage that meets or exceeds standard Part D's actuarial value. Common sources: employer or union retiree drug plan, VA benefits, TRICARE, FEHB, some COBRA plans. Insurers must notify you each year whether your coverage is creditable. As long as you have continuous creditable coverage from age 65 onward, you can delay Part D enrollment without owing the late enrollment penalty. Lose creditable coverage and you have 63 days to enroll in Part D before penalties begin to accrue.
📎 Primary source: official source
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