Prescription Drug Creditable Coverage Notice

November 2005

Please read this notice carefully and keep it where you can make reference to it later. This notice has information about your current prescription drug coverage with Seton Hall University and the new prescription drug (Medicare Part D) coverage available January 1, 2006 for individuals with Medicare. It also tells you where to find more information to help you make decisions about your prescription drug coverage.

1. Starting January 1, 2006, new Medicare prescription drug coverage will be available to everyone with Medicare.
    
2. Seton Hall University has determined that the prescription drug coverage offered by Seton Hall is, on average for all plan participants, expected to pay out as much, or significantly more, than the standard Medicare prescription coverage will pay.

Starting January 1, 2006, prescription drug coverage will be available to everyone with Medicare through the Medicare prescription drug plans. All Medicare prescription drug plans will provide at least a standard level of coverage set by Medicare. The premiums will vary dependent upon where one resides and the level of coverage. Since your existing Seton Hall coverage is on average at least as good as the standard Medicare prescription drug coverage, if not significantly better, you can keep your Seton Hall coverage and not pay extra, if you later decide to enroll in the Medicare prescription coverage.

Individuals with Medicare can enroll in a Medicare prescription drug plan from November 15, 2005 through May 15, 2006. Since you have existing prescription drug coverage that, on average, is as good as Medicare coverage, you can choose to join a Medicare prescription drug plan later. Each year after that, you will have the opportunity to enroll in a Medicare prescription drug plan between November 15th through December 31st.

If you do decide to enroll in a Medicare prescription drug plan and drop your Seton Hall prescription drug coverage, although highly ill-advised, be aware that you will not be able to enroll in this coverage until the next year’s open enrollment period. Therefore, you should carefully compare your current Seton Hall coverage with the coverage and cost of the plans offered by Medicare in your area.

Your current coverage pays for other health expenses, in addition to prescription drugs; you will still be eligible to receive your health benefits if you choose to enroll in a Medicare prescription drug plan.

If you drop or lose your coverage with Seton Hall University and don’t enroll in Medicare prescription drug coverage after your current coverage ends, you may have to pay more to enroll in a Medicare prescription drug plan later. After May 15, 2006, if you go without prescription drug coverage that is at least as good as Medicare’s prescription drug coverage for 63 days or longer; your monthly premium will go up at least 1% per month for every month after May 15, 2006 which you did not have the coverage. (For example, if you go nineteen months without prescription coverage, your premium will always be at least 19% higher than what most other people pay.) You will have to pay the higher premium as long as you have the Medicare prescription drug coverage. In addition, you may have to wait until the following November to enroll.

For more information about Seton Hall University’s prescription drug coverage or this notice, please call the Benefits Office at (973) 761-9176 or (973) 761-9181 or write:

Seton Hall University
Benefits Office – Presidents Hall
400 South Orange Avenue
South Orange, New Jersey 07079

For more information about the Medicare prescription drug coverage: