Endorsed PDP
DESCRIPTION
Group encourages enrollment into "endorsed" Prescription Drug
Plan (PDP)'s individual plan(s). Group may choose to pay Medicare Part D
premiums.
QUESTIONS TO CONSIDER
- Are you currently funding Retiree benefits?
- Do you want to continue existing Retiree coverage?
- Are you required to make a financial commitment to Retiree benefits?
- Do you intend to make any premium contributions?
RETIREE DISRUPTION
- Part D coverage not the same as existing coverage
- Change in coverage may cause disruption
- No group enrollment if sponsor is not paying the premium
COST SAVINGS
- Minimal financial commitment
- Groups can pay premiums on behalf of Retirees
ADMINISTRATIVE BURDEN
- No administrative functions related to providing drug coverage
- Group enrollment allowed if sponsor is paying the premium
- Groups must communicate that Retirees are responsible for individually enrolling in Part D (if the sponsor is not paying premiums)
- Sponsors must communicate that premium payment is contingent on joining the endorsed PDP
GROUP SPONSOR SHOULD CONSIDER IF:
- Group is not currently making significant contribution to Retiree benefit
- Group can accept a change in Retirees' existing coverage
- Group can accept some disruption
- Group is considering dropping Retiree drug coverage
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