Excerpt: LINCOLNSHIRE, Ill., April 20, 2011 — Most large employers are now beginning to rethink their retiree health care strategy as a result of federal health care reform, according to a recent report by Aon Hewitt, the global human resource consulting and outsourcing business of Aon Corporation (NYSE: AON).
In late 2010, Aon Hewitt surveyed 344 companies, representing 2.2 million retirees nationwide, and found that 61 percent were either already evaluating or were expected to evaluate their long-term retiree medical strategy by the end of 2011, due to health care reform. Meanwhile, 23 percent of respondents indicated they were still considering whether to assess their current strategy and only 16 percent had no immediate plans to review their current approach.
Excerpt: On April 4, 2011, the Centers for Medicare & Medicaid Services (CMS) announced the indexed Medicare Part D standard benefit and Retiree Drug Subsidy (RDS) amounts for 2012.1 This Capital Checkup features charts comparing the 2012 numbers to the 2011 numbers.
The Medicare Modernization Act (MMA) requires CMS to announce indexed Medicare Part D standard defined benefit amounts each year that reflect the increase in drug costs. In 2012, the Medicare Part D standard defined benefit amounts will increase by 3.34 percent, a rate that is based on drug cost trend of 4.67 percent in 2011 (almost the same trend as one year earlier: 4.63 percent), adjusted by CMS for prior year revisions.
Excerpt: (Reuters) – Many states cannot afford to cover promises made to their future retirees, with the Pew Center on the States reporting on Tuesday that there is a $1.26 trillion gap between what they have pledged to pay and the amount they have set aside. Nearly half of that amount, $604 billion, is for healthcare and other benefits not included in pensions, such as life insurance.
Excerpt: TUESDAY, March 15 (HealthDay News) — Many Americans aged 65 and older are not receiving potentially lifesaving preventive health services, says a new report by several U.S. Department of Health and Human Services agencies. Too few seniors are getting recommended vaccinations for influenza and pneumococcal disease, including bloodstream infections, meningitis and pneumonia; help with quitting smoking; or screenings for breast cancer, colorectal cancer, diabetes, high cholesterol and osteoporosis, according to the report released March 14.
Excerpt: A bill to cover seniors’ need for skilled nursing care following an observational stay at a hospital is making its way through Congress. The bipartisan legislation, entitled the Improving Access to Medicare Coverage Act of 2011, is being praised by provider groups, such as the American Health Care Association.
Excerpt: Last week the U.S. House majority leaders announced a sweeping $6 trillion strategy to reduce the federal budget deficits structurally. State and local officials are largely focused on the immediate impact on intergovernmental assistance programs and the Medicaid program. They should also pay attention to the hidden impact that Medicare reforms would have on their retiree medical benefits plans (or “OPEB” for other post-employment benefits).
Excerpt: Starting this year, Medicare Part D’s widely despised “donut hole” — the gap in drug cost coverage enrollees encounter when they reach a certain spending threshold — will start to disappear, one result of the health care reform package enacted last year, experts say.