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:
- 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.
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.
Report
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 research@soa.org.