The Benistar Senior Star keeps you informed of the news in the world of Retiree Benefit Plans. Here are some of the recent news articles we think will be of interest to you.
As Retiree Drug Subsidy Program Becomes Less Attractive, Employers Consider Using ‘Group Waiver Program’
"Employers who currently receive a federal tax subsidy for providing retiree prescription drug coverage under the retiree drug subsidy program, or RDS, will no longer be able to take a deduction for that subsidy as of 2013 … Therefore, many employers are considering an alternative subsidy program referred to as the Employer Group Waiver Program, or EGWP, as an attractive way to achieve significant plan savings and are weighing the benefits of the EGWP against the RDS." (G http://www.benefitspro.com/2012/05/10/retired-couples-may-need-240000-for-health-careroom Law Group)
Final Medicare Part D Regulations Include Coverage Gap Discount Program
"The regulations include changes reflecting HHS’ experience to date in administering Part D and will be of interest to sponsors of Part D prescription drug plans. In addition, some group health plans must coordinate with Part D prescription drug plans, among other reasons, to determine which coverage pays first and to disclose to Part D individuals whether the group health plan coverage is creditable." (Practical Law Company)
By Kathryn Mayer
Nine in 10 seniors enrolled in Medigap say they are satisfied with their coverage and the vast majority (91 percent) say they’d recommend the coverage to a friend or relative when they turn 65, a survey from America’s Health Insurance Plans finds…Read more
New York State Retiree Health Liability Rises to $72 Bil.lion; NYC’s Is $84 Bil.lion
"Most states cover retiree health benefits on a pay-as-you go basis. They don’t set aside money annually to pre-fund the obligations, as they do with pensions. Last year, New York, the third-biggest U.S. state by population, spent $3.3 bil.lion on health care for active and retired employees as health-care spending rose 6 percent." (Bloomberg)
(Crain’s) — The Deerfield chain will participate "in the broadest Express Scripts retail pharmacy network available to new and existing clients."