Twitter

Friday, April 28, 2006

Survey: Employers Contemplating Changes in Retiree Drug Benefits

According to a survey developed by Towers Perrin and conducted by the International Society of Certified Employee Benefit Specialists (ISCEBS), a number of employers sponsoring post-65 retiree medical programs are rethinking their prescription drug strategies for 2007, and there’s greater interest in approaches that do not involve taking the Medicare Part D subsidy. In particular, the survey showed that 65% of plan sponsors chose to retain a prescription drug benefit and take the subsidy in 2006, 63% said they had not decided on how to respond to Medicare Part D beyond 2006. The two most popular choices for those (37%) with a 2007 strategy are to offer a supplemental plan in coordination with Medicare Part D plans available in the market and to arrange to offer a specific Part D plan. In addition, 12% indicated that they planned to eliminate all retiree medical coverage in 2007 or eliminate prescription drug coverage.

Source: "Employers With Retiree Drug Benefits Charting Different Courses for 2007" Towers Perrin Monitor (April 13, 2006)

No comments: