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hinder the design of, the offering of, or the enrollment in an employer or union sponsored MA and Part D retiree plans, a process for group disenrollment from employer or union sponsored MA and Part D plans.

CMS will allow employer or union plans to disenroll retirees from an MA or Part D plan at any time using a group disenrollment process.

In the group disenrollment process:

Step 1. Individuals receive advance notice of the employer or union’s intent to disenroll them from a plan sponsored by the employer/union.

Step 2. Plan, employer, or union sends required notice at least 21 days prior to the effective date of the individual’s disenrollment.

Step 3. After notice requirements are met, the employer or union must provide the following in the group disenrollment file(s) it sends to the plan:

• All the information (i.e., data elements) required for the plan to submit a complete disenrollment request transaction to CMS (see Appendix 2); and • The disenrollment effective date as permitted in guidance.

Step 4. Individual notice must include information for enrollees to contact Medicare about other MA or Part D plan options.

Step 5. Plan files and retains disenrollment records for current contract period and prior 10 years as outlined in § 70.8.

60.1.7 – Disenrollment Process for Employer/Union Sponsored Coverage Terminations

When the contract between an employer or union group and an MAO or Part D sponsor is terminated, or the employer/union determines that an individual is no longer eligible to participate in the employer/union sponsored plan,1 employer or union sponsored plans operating under waivers issued by CMS under sections 1857(i) and 1860D-22(b) of the Act, have two options for how to disenroll individuals from the current employer or union sponsored plan.

For both of the following options, the plan must ensure that the employer or union agrees to the following:

• The employer or union will provide the plan with timely notice of contract termination or the ineligibility of an individual to participate in the employer or union group sponsored plan. Such notice must be prospective, not retroactive.

1 The employer/union establishes criteria for its retirees to participate in the employer/union sponsored plan. These criteria are exclusive of and in addition to the eligibility criteria for MA or Part D enrollment. Eligibility criteria to participate and receive employer/union sponsored benefits may include spouse/family status, payment to the employer/union of the individual’s part of the premium, or other criteria determined by the employer/union.