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Estimated Impact of Medicare Part D on Retiree Prescription Drug Costs

Research Projects – Health

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:

  1. Maintaining the current drug benefit program and receiving the 28% government subsidy.
  2. Offering a plan that wraps around or integrates with the new Part D benefit.
  3. Terminating the current drug coverage for their Medicare-eligible retirees.

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.


Estimated Impact of Medicare Part D On Retiree Prescription Drug Costs

Thank You

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

Questions Or Comments?

If you have comments or questions, please send an email to