tci Medicare Compliance & Reimbursement - 2004 Issue 15

Medicare Reform: Employers Won't Get Medicare Drug Subsidy If They Shift Too Many Costs To Retirees

Earlier this year, the Wall Street Journal reported expert opinion suggesting that employers could still get their full Medicare drug-coverage subsidies if they offered plans in which retirees -- not the company -- picked up virtually all the costs. Now both the Bush administration and a top congressional architect of the law have clarified their agreement that that's not the case. The level of retiree cost sharing is germane to determining whether an employer-sponsored plan is eligible for the new subsidy, the officials agree. Most recently, new Centers for Medicare & Medicaid Services Administrator Mark McClellan noted in...

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