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Zero Plan Disruption for Retirees
Zero Plan Disruption for Retirees
EGWP's allow plan retiree's to keep the same pharmacy benefits without interruption or additional costs, while the plan provider realizes significant cost savings.
Retiree Prescription Drug Plans
Retiree Prescription Drug Plans
Under an EGWP the PDP handles main administrative requirements, manages all federal interaction, collects federal Part D plan subsidies and assumes compliance responsibilities.
Employee Group Waiver Plans
Employee Group Waiver Plans
EGWP's are commonly referred to as Egg Whips and provide generous cost savings combined with improved cash management.
 
 

Impending CMS EGWP Changes May Make Supplemental Insurance Unnecessary

April 2014 CMS EGWP +wrap Rule Change

Dec. 23, 2013 – According to Crain’s Business Insurance Magazine, CMS EGWP +wrap plans may become unnecessary if the CMS regulations change as anticipated in April of 2014.

Migration to CMS EGWP Moving Quickly

Click here for access to this article on EGWP + wrap businessinsurance.comAccording to the article, changes to CMS EGWP plans are being readily adopted as changes to the Medicare Part D RDS  subsidies are no longer tax deductible.  Employers implementing an EGWP have seen resulting pretax costs lowered by 20% than comparable RDS schemes.  This is likely what has prompted employers who maintain OPEB prescription drug plans for retirees to move quickly to EGWP strategies.

According to statistics quoted in the article by an annual employer survey conducted by Towers Watson/National Business Group, nearly 57% of employers plan to or are considering implementing an EGWP over the next three years.  In a separate study conducted by AON Hewitt, 62% of plan sponsors will be implementing an EGWP.  The reasons cited included fewer approvals and less analysis compared to sending their populations into the open market to secure prescription benefits.

Revised guidance from CMS EGWP guidance is expected in April.  Under these changes, plan sponsors would receive a 50% discount on brand name prescriptions while retiree’s are in the donut hole, something that plan sponsors now have to secure supplemental/wrap plan to cover.  EGWP’s would apparently still have 80% of the cost of catastrophic coverage paid for by the federal government under an EGWP plan.

Read the entire employer sponsored drug benefit story here. (free registration required for access).

Looking for advice and direction for your employer sponsored drug benefit for retiree’s?  Our experienced and knowledgeable benefits consultants can help you sort out the maze of options available for you to provide your population the best in prescription benefits.  Just fill out the form below and one of our consultants will respond promptly for a free no sales pitch, no obligation consultation and get your program costs lowered and reduce headaches for you and your staff (brokers also welcome).

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About The Author

Employer group waiver plan consultant helping Medicare Part D eligible retiree pharmacy benefit plan sponsors and brokers select the best medicare part d prescription drug products for their plan enrollees with no plan interruption, higher benefit payouts, substantial administrative burden reductions, faster cash flow and more.

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