2012 Hot Topics in Retirement - Aon

44 Aon Hewitt
Prescription Drug Coverage Filing for the Medicare Part D Retiree Drug Subsidy (RDS) is still the most
popular prescription drug coverage strategy, but employers are continuing to
move away from it. For 2012, 57% of respondents reported that they will use
this approach—down from 65% a year ago. In addition, only 40% stated that
they anticipate using this approach in 2013.
2012 and Projected 2013 Medicare Rx Strategy
for the Largest Age 65+ Plan
Strategy
O�er Rx coverage and file for the 28% RDS
Contract with a Medicare Rx plan (PD/EGWP)
to provide at least Part D Rx coverage
Supplement or wrap-around individual
Medicare Rx Part D coverage through the
group program
Discontinue group-based Rx coverage with
no employer subsidy
Discontinue group-based Rx coverage but
provide an employer subsidy and source
coverage through the individual market
File with CMS to become a Medicare Rx
Part D plan
Actual
2012
57%
16%
15%
4%
6%
3%
Projected
2013
40%
28%
13%
8%
9%
2%
(n=196) (n=187)
HSA-Compatible One health care reform provision is an excise tax on high-value health plans.
This may have employers looking to new strategies for providing pre-65 retiree
medical coverage. One possible strategy is to o�er early retirees a program that
combines a high-deductible health plan (HDHP) with a health savings account
(HSA). About one-quarter of employers o�ering health care to pre-65 retirees
currently o�er an HSA-compatible HDHP. Note: The excise tax does
not go into e�ect until 2018.