Research Projects
Research Projects in Health
Estimated Impact of Medicare Part D on Retiree Prescription Drug Costs
The Health Section Research Team is pleased to make available the following report that
estimates the impact on plan sponsor retiree pharmacy costs when Medicare Part D is implemented in 2006. The
research was conducted by Kevin Dolsky and Richard Marchel of Actuarial & Health Care Solutions, LLC (AHCS).
The report provides estimated savings measured over a 50 year time frame for several of the
options that will be available to plan sponsors after implementation of the Medicare prescription drug program.
These options include:
- Maintaining the current drug benefit program and receiving the 28% government subsidy.
- Offering a plan that wraps around or integrates with the new Part D benefit.
- Terminating the current drug coverage for their Medicare-eligible retirees.
- Estimated Impact of Medicare Part D on Retiree Prescription Drug Costs with Exhibits
- Note: This report is intended as a reference guide and resource for actuaries estimating
the impact of Medicare D on plan sponsor costs, including the application to retiree valuations. It is not
intended as a substitute for an analysis of available claim and exposure data for a specific plan nor should be
inferred as providing standard valuation tables or values for FASB type calculations or other purposes.
- The Health Section Research Team wishes to thank the following individuals that served on
the Project Oversight Group:
- Corey Berger
- April Choi
- Tony Hammond
- Joe Korabik
- Gary Reed
- Steven Siegel
- Cori Uccello
- If you have questions or comments regarding this report, please direct them to Steven Siegel, SOA Research Actuary.