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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.
 
 

Vermont State Retired Employees and Teachers Switch to EGWP for Savings

Vermont Retirees Switch to EGWP for Drug Benefits

Vermont Retired state employees and teachers switch to an EGWP plan from the CMS RDS.Vermont state retired employees and teachers switch to EGWP for their retiree prescription plan drug benefits.  According to VTDigger.com, federal subsidies provided by a switch to EGWP plan will save the state 2.1 million to 2.6 million annually.  In addition, the state’s future liabilities for OPEB’s will be reduced by over $100 million.

According to VTDigger, Vermont state Human Resources Commissioner Kate Duffy is quoted as saying “There’s a lot of talk about limiting the benefits that we provide to retirees, the more we can make them affordable, the more we can sustain our commitment, which is something we want to do.”

This is in line with other state and municipalities switch to EGWP based plans as opposed to an RDS subsidy that had been popular until the changes in the Affordable Care Act made it a less desirable option for state agencies and municipalities.

The switch to EGWP means that the state will not have to discontinue this valuable benefit for its state retirees.  Prescription Drug benefits are a very popular program for retirees, and Vermont is bucking that trend by being able to save money and continue to provide the benefit.  Many other company’s and states have eliminated or are thinking about eliminating the prescription drug benefit altogether.

One of the reasons that Duffy gave for the switch to EGWP was the “savings from EGWP previously had to be placed into a reserve account, but now can be credited to future liabilities in accordance with Governmental Accounting Standards Board (GASB) practices.”

Read the entire story about their switch to EGWP here.

If you are a plan provider or a broker with clients who have been receiving the CMS RDS subsidy and want to learn more about how you can switch to an EGWP from and RDS, please fill out the form below and one of our experienced Employer Group Waiver Plan consultants can guide you through the process.


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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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