Medicare and Medicaid

Report Touts Employer Benefits of Employer Group Waiver Plan with Wrap-Around Secondary Plan
Excerpt:"Employers providing prescription drug benefits to Medicare-eligible retirees could enjoy'a potentially significant savings opportunity'with a particular plan configuration called EGWP + Wrap, according to a new PricewaterhouseCoopers (PwC) report. The [report asserts that the arrangement could potentially reduce employers'pre-tax cash cost by 20% or more below current levels under the Retiree Drug Subsidy program] and would not require a substantial change from the current drug benefit design from retirees'standpoint."(PLANSPONSOR.com)

Dealing with Medicare Part B and COBRA Coverage
Excerpt:"The Social Security law allows people to postpone enrollment in [Medicare] Part B without penalty only if, and for so long as, they have group health insurance coverage that is provided by an employer for whom they (or their spouses) are still working."(Ford&Harrison LLP)

[Opinion] Will Health Savings Trickle from Your Paycheck to Social Security?
Excerpt:"The theory is that the health law will help the financial viability of Social Security because employers will shift money they now spend on health insurance into higher wages. That, in turn, will mean more taxes collected on fatter payrolls to support Social Security and Medicare."(National Public Radio)

[Opinion] The Latest on Medicare and Social Security
Excerpt:"According to the reports, the date of insolvency for Medicare's hospital fund was pushed back, from 2017 to 2029, because of cost-saving measures in health reform. As for Social Security, without any changes, it will be able to pay full benefits until 2037 and partial benefits after that, the same estimate as in last year's report, despite temporary setbacks from the recession."(The New York Times; free registration required)

[Guidance Overview] Centers for Medicare and Medicaid Services Updates HRA Coverage Reporting
Excerpt:"Among the issues addressed in the updated guide are references to changes in reporting for Health Reimbursement Arrangements (HRAs). CMS has removed all references from the updated guide that previously referred to reporting only for'free-standing'HRAs."(Fisher&Phillips LLP)

[Opinion] Should We Raise the Retirement Age?
Excerpt:"On the face of it, lifting the retirement age [for Social Security and Medicare] makes sense. Americans are living longer, so they could retire later and still enjoy their golden years. Except??'only some of us are living longer."(The Century Foundation)

[Guidance Overview] Centers for Medicare and Medicaid Services Guidance on Mandatory Medicare Secondary Payer Reporting of HRA Coverage (PDF)
2 pages. Excerpt:"Information about HRA coverage must be submitted by Responsible Reporting Entities . . . starting in the fourth quarter of 2010."(Buck Consultants)

Potential Loophole Closed in Drugmaker Agreement for Part D Doughnut Hole
Excerpt:"Beginning in 2011, beneficiaries will receive a 50% discount on brand-name drugs in the coverage gap from manufacturers."(AIS Health.com)

Joint Commission Delays Telehealth Requirements for hospitals Until March 2011
Excerpt:"Prior to the announcement, Joint Commission-accredited hospitals were expected to implement by July 15 new elements of performance to conform to Medicare's credentialing and privileging requirements for telehealth services."(California HealthCare Foundation)

Changes in Part D Gap Coverage Add Burden, Confusion for Health Plans
Excerpt:"The consensus among industry stakeholders is that the new 50% Medicare Part D coverage-gap discount on brand-name drugs is confusing for all involved."(AIS Health.com)

Medicare Secondary Payer Reporting for Health Reimbursement Arrangements Clarified
Excerpt:"Generally, employers don't file with CMS, but must give information to insurers and TPAs. Reporting will help CMS identify which Medicare-covered individuals have group health plan coverage that should pay claims primary to Medicare."(Mercer LLC)

CHIP Working Group Second Meeting to Address Draft Model of Group Health Coverage Coordination Disclosure Form
Excerpt:"The Centers for Medicare&Medicaid Services (CMS) and the Employee Benefits Security Administration (EBSA) announced the second meeting of the Medicaid, Children's Health Insurance Program (CHIP) and Employer-Sponsored Coverage Coordination Working Group (CHIP Working Group). The purpose of the meeting is to discuss section 311(b)(1)(C) of the Children's Health Insurance Program Reauthorization Act of 2009 (CHIPRA)."(International Foundation of Employee Benefit Plans)

COBRA Subsidy Stall Could Raise Premiums for Millions While Battle Rages Over'Doc Fix'
Excerpt:"The subsidy [started expiring] June 1 and an extension was not included in a jobs bill passed by the House of Representatives last Friday.'A Department of Treasury study said premiums could rise from an average of $389 to more than $1,100 per month without the subsidy."(Henry J. Kaiser Family Foundation)

Centers for Medicare&Medicaid Services'Report Says 1.4M Fewer Americans to be in Employer Health Plans as of 2019
Excerpt:"Made public by U.S. Representative John Kline (R-Minnesota), the report also asserted that seven million seniors would no longer be covered by Medicare Advantage and that the nation's health care spending would increase by $331 billion over the next 10 years."(PLANSPONSOR.com)

[Guidance Overview] Federal Tax Rate Changes, and Potential Changes, for Individuals, Arising from Recent and Expiring Legislation
Excerpt:"This article provides an overview of the Federal tax rate changes, and potential changes, for individuals, arising from (i) the automatic expiration at the end of 2010 of certain tax laws, (ii) the recent enactment of the Patient Protection and Affordable Care Act (and the related Reconciliation Act of 2010, collectively the'Health Care Act'), and (iii) certain legislative proposals."(Snell&Wilmer L.L.P.)

[Guidance Overview] CMS Announces Indexed Medicare Part D Amounts for 2011
Excerpt:"On April 5, 2010, the Centers for Medicare&Medicaid Services (CMS) announced the indexed Medicare Part D standard benefit and Retiree Drug Subsidy (RDS) amounts for 2011. This Capital Checkup features charts comparing the 2011 numbers to the 2010 numbers."(The Segal Group, Inc.)

[Guidance Overview] DOL's Model CHIP Notice on State Premium Assistance (Updated April 7, 2010)
Excerpt:"To help inform employees about state Medicaid or children's health insurance programs that offer premium assistance for employer-sponsored coverage, the Labor Department has issued a model notice and guidance. The model describes the assistance program, outlines related special-enrollment rights and lists government resources. Employers may tailor the notice and send it in electronic or paper format with other plan materials."(Mercer LLC)

Major Employers Announce Costs of Drug Subsidy Deduction Change; Long-Term Impact Is Uncertain
Excerpt:"Some major employers have announced large non-cash charges against their retiree medical liabilities as a result of a provision in the Patient Protection and Affordable Care Act (P.L. 111-148). As of Jan. 1, 2013, the law removes the amount of the Medicare Part D retiree drug subsidy (RDS) these firms receive from the amount of prescription drug costs that they claim as a deduction in their corporate tax returns."(Wolters Kluwer)

[Guidance Overview] First Quarter 2010 Financial Reporting Implications of Elimination of Medicare Part D Subsidy Tax Deduction
Excerpt:"The Acts effectively change the tax treatment of federalsubsidies paid to sponsors of retiree health benefit plans that provide a benefit that is at least actuarially equivalent to the benefits under Medicare Part D. The PPACA effectively made these subsidy payments taxable for tax years beginning after December 31, 2010. HCERA delayed the effective date of this provision to tax years beginning after December 31, 2012."(PricewaterhouseCoopers)

Healthcare Reform Law Cuts Medicare Advantage Payments and (Mostly) Increases Prescription Drug Program Payments (PDF)
Excerpt:"While increasing overall expenditures, the Healthcare Reform Law also cuts approximately $16 billion from the Part D program, primarily byreducing Part D premium subsidies for high-income beneficiaries. Companies that offer MA and Part D plans and pharmaceutical manufacturers will be the most directly affected by these changes."(Morgan, Lewis&Bockius LLP)

[Guidance Overview] CMS's 2011 Medicare Part D Benefit Parameters (PDF)
Excerpt:"Plan sponsors that want to remain qualified for the employer retiree drug subsidy will need to determine if their 2011 prescription drug coverage is at least actuarially equivalent to the 2011 standard Medicare Part D coverage. The actuarial equivalence testing will not reflect the new benefits provided in the donut hole. Those plan sponsors who provide coverage directly or indirectly through a Part D plan may want to review the impact of these new parameters and provisions on their plans.In any event, plan sponsors may want to evaluate whether to move Medicare retirees into other options for medical and/or drug coverage for 2011. The changes made under the health care reform law make a review of various options particularly important this year."(Buck Consultants)

[Guidance Overview] Elimination of Tax Deduction Related to Medicare Part D Subsidy: Accounting for the Impact Under U.S. GAAP and IFRS
Excerpt:"Under U.S. GAAP, ASC 740, Income Taxes, requires the impact of the change in tax law to be immediately recognized in continuing operations in the income statement in the period that includes the enactment date (i.e., the date the change is signed into law). Companies affected by the change in tax treatment will need to identify theimpact of the change. That amount would reduce the deferred tax asset on the balance sheet with an offsetting charge to the income statement in the period that includes the enactment date (e.g., a calendar year-end publiccompany would record the charge in the quarter ended March 31, 2010). Different accounting for the change in tax treatment is required under IFRS."(PricewaterhouseCoopers)

[Opinion] FEI Submits Comment Letter Regarding the Real Impact of Health Care Reform on Businesses (PDF)
2 pages. Excerpt:"On April 6, 2010, FEI's President and CEO Marie Hollein submitted a comment letter to the chairmen and ranking members of the Energy and Commerce Committee and the Energy and Commerce Subcommittee on Oversight and Investigations of the U.S. Congress. The letter outlines FEI's concerns with the tax treatment of the Medicare Part D Subsidy in the new health-care law and is in response to an Energy and Commerce hearing on the impacts the Patient Protect and Affordable Care Act of 2010 is having on United States'businesses."(Financial Executives International)

[Guidance Overview] Increased Medicare Taxes Imposed Under Health Reform Law Will Not Be Assessed on Plan Distributions
Excerpt:"Provisions of the recently enacted health reform legislation (The Patient Protection and Affordable Care Act (P.L. 111-148)) that would impose additional Medicare payroll taxes on individual earned income and net investment income over $200,000 ($250,000 for joint filers) will not apply to elective contributions or to amounts earned on investments in 401(k) and other qualified plans."(Wolters Kluwer)

EBSA and Centers for Medicare&Medicaid Services Announces Meeting of CHIP Working Group, Addressing Employer-Sponsored Group Health Plan Coverage Coordination (PDF)
2 pages. Excerpt:"The CHIP Working Group will meet . . . to develop a model coverage coordination disclosure form for group health plan administrators to send to States upon request regarding benefits available under the plan. . . . The CHIP Working Group will identify and report on the impediments to the effective coordination of coverage available to families that include employees of employers that maintain group health plans and members who are eligible for medical assistance under title XIX of the [Social Security] Act or child health assistance or other health benefits coverage under title XXI of the [Social Security] Act."(Employee Benefits Security Administration, U.S. Department of Labor; Centers for Medicare&Medicaid Services, U.S. Department of Health and Human Services)

H.R. 4796 Proposes Modifications to Medicare Secondary Payer Recovery and Reporting Requirements
Excerpt:"On March 9, 2010, Representative Patrick Murphy (D-PA) introduced H.R. 4796, the Medicare Secondary Payer Enhancement Act of 2010, into the U.S. House of Representatives. H.R. 4796 is currently in the early stages of the legislative process, having last been referred to the House Energy and Commerce Committee on March 9, 2010. H.R. 4796 proposes several changes to the Medicare Secondary Payer Act (MSP Act) (42 U.S.C. ? 1395y(b)) and reporting under Section 111 of the Medicare, Medicaid, and SCHIP Extension Act of 2007, Pub. L. 110-173 (42 U.S.C. 1395y(b)(7)&(8))."(McDermott Will&Emery)

Corporate America Weighs in on Costs of New Healthcare Law
Excerpt:"Deere&Co. and Caterpillar Inc. said they are expecting a combined $250 million in charges this year . . . . The charges relate to a provision in the legislation that will curb by 2013 federal subsidies provided to employers that offer prescription drug coverage to Medicare eligible retirees at least equal to Medicare Part D."(Business Insurance)

[Guidance Overview] Employer CHIP Notice Will Assist Employers'Compliance with CHIPRA
Excerpt:"The U.S. Department of Labor's Employee Benefits Security Administration (EBSA) released the model Employer CHIP Notice on February 9, 2010. The Notice, as required under the Children's Health Insurance Program Reauthorization Act of 2009 (CHIPRA), is intended to assist employers with notifying employees about possible opportunities for premium assistance and receiving medical coverage under an employer's group health benefit plan."(Littler Mendelson P.C.)

[Guidance Overview] Employers Required to Issue New'CHIP'Health Benefit Eligibility Notice to Employees
Excerpt:"Employers are now required to notify each employee of [the] opportunities under state Medicaid and CHIP for financial assistance in paying for employer-provided health insurance. The Department of Labor has issued a model notice by which employers may satisfy this requirement."(Nixon Peabody LLP)

[Opinion] As Federal Spending Has Increased, the Tax Rate Has Decreased and the Deficit Is Balloning
Excerpt:"Congressional Republicans have shown little willingness to consider any tax increases, and Mr. Obama has shown no indication of breaking his $250,000-and-under pledge. We voters, meanwhile, tend to oppose government spending in general while supporting the government programs that the spending pays for."(The New York Times; free registration required)

[Guidance Overview] Employee Notice about CHIP/Medicaid Programs Now Required
Excerpt:"[E]mployers should determine whether they will provide the notice to all employees, regardless of their state of residence, or send the notice only to those employees who live in one of the 40 listed states. Finally, employers should determine how to provide the notices. Options include mailing it along with other printed materials as part of annual open enrollment, sending it as a separate mailing, or, for those workforces that use computers as a regular part of their job duties, providing the notice electronically."(The Segal Group, Inc.)

[Guidance Overview] Recent Developments in Employee Benefits and Executive Compensation, by Blank Rome, March 2010
Describes highlights of mental health parity regulation, revision of SEC executive compensation disclosure rules, issuance of model CHIP notice, and additional 403(b) DOL guidance. (Blank Rome)

[Guidance Overview] DOL Provides Spanish Version of CHIP Notice
Excerpt:"The Department of Labor's Employee Benefits Security Administration has posted a Spanish version of the Model Notice for employers to use to regarding eligibility for premium assistance under Medicaid or the Children's Health Insurance Program (CHIP). In addition, the Model Notice in English was reposted with updated contact information (see DoL Publishes CHIP Model Notice)."(PLANSPONSOR)

[Guidance Overview] DOL Provides Spanish Version of CHIP Notice
Excerpt:"The Department of Labor's Employee Benefits Security Administration has posted a Spanish version of the Model Notice for employers to use to regarding eligibility for premium assistance under Medicaid or the Children's Health Insurance Program (CHIP)."(PLANSPONSOR)

[Opinion] Proposal for Reducing the Federal Deficit: Make 2011 Be a'No COLA'Year
Excerpt:"I propose that we designate 2011 as the No COLA year. Under this proposal, in 2011 no cost-of-living adjustments would be implemented in the federal budget or tax law. When COLAs resume for 2012, any inflation which occurred in 2010 will be permanently disregarded. In a spirit of universal sacrifice, the suspension of COLAs in 2011 would be across-the-board. . . . The alternative of doing nothing is worse and will, in the long run, result in greater taxes and more disruption to entitlement and other spending programs."(Prof. Edward Zelinsky via OUPblog.com)

[Guidance Overview] Medicare Mandatory Reporting Requirements Update
Excerpt:"First, a recurring problem for [a Responsible Reporting Entity] is obtaining HICN or SSN information of participants and their dependents. Because of heightened awareness of the risks of identity theft, individuals may be reluctant to provide HICN or SSN information. In response to this problem, CMS has issued guidance advising participants and dependents to cooperate with RRE requests for HICN or SSN information. CMS issued a revised model collection form in August 2009 that RREs may use to assist them in obtaining individuals'HICN or SSN information."(Warner Norcross&Judd LLP)

[Opinion] Bipartisan Commission To Tackle Social Security and Medicare Reform Issues
Excerpt:"In the wake of the failure by Congress to agree to a binding commission to restore fiscal stability by recommending changes to Social Security, Medicare, and Medicaid, President Barack Obama has established by executive order the National Commission on Fiscal Responsibility and Reform."(Wolters Kluwer)

Annual Statistical Supplement to the Social Security Bulletin, 2009
Excerpt:"The Supplement is a major resource for data on our nation's social insurance and welfare programs. The majority of the statistical tables present information about programs administered by the Social Security Administration -- the Old-Age, Survivors, and Disability Insurance program, known collectively as Social Security, and the Supplemental Security Income program. In addition, data are presented on the major health care programs -- Medicare and Medicaid -- and social insurance programs, including workers'compensation, unemployment insurance, temporary disability insurance, Black Lung benefits, and veterans'benefits."(U.S. Social Security Administration)

[Guidance Overview] Model CHIP Notice Available (PDF)
2 pages. Excerpt:"The CHIP Notice is not required to be provided in a separate mailing. Rather, the CHIP Notice may be furnished concurrent with enrollment packets, during open enrollment, or concurrent with the furnishing of the plan's summary plan description. However, the CHIP Notice must appear separately and in a manner which ensures that an employee who may be eligible for premium assistance could reasonably be expected to appreciate its significance."(Dechert LLP)

Navigating the Shifting Tax, and Retirement Living Costs, Landscape
Excerpt:"Retirement accounts, charitable gifts and taxes that older, high-income Americans face on Medicare are all in dispute on Capitol Hill. As long as Washington dithers on tax policy, higher-income individuals and people with most forms of investment income will find it difficult to plan their economic lives. Here is a look at the changing tax landscape, starting with little-known levies that can fall hard on higher-income retirees."(The New York Times; free registration required)

Centers for Medicare and Medicaid Services Delays Medicare Secondary Payer Mandatory Reporting, Which Was to Begin April 1, to Jan. 1, 2011
Excerpt:"Medicare Secondary Payer reporting requirements are intended to ensure that Medicare remains the secondary payer when a Medicare beneficiary has medical expenses that should be paid primarily by a liability, no-fault or workers compensation plan."(Business Insurance)

Ohio Lawmakers Say Business Not Government Responsible for Health Care Needs of Workers
Excerpt:"Four Ohio lawmakers released information Tuesday provided by the Ohio Dept. of Job and Family Services (ODJFS) that revealed over 100,000 employees of large corporations like Wal-Mart or McDonald's doing business Ohio rely upon government-run programs like Medicaid or food stamps to make ends meet."(Columbus Government Examiner)

[Official Guidance] Text of Model Employer CHIP Notice to Employees About Availability of Premium Assistance Under State Medicaid Programs or Child Health Assistance Programs
3-page Microsoft Word document. Excerpt:"The Model Employer CHIP Notice was designed as a template to cover an array of situations where employees may be entitled to notice and may reside (or their families may reside) in States across the nation. Employers may use the model template as a national notice to fulfill their employer notice disclosure obligation under ERISA . . . and the parallel provisions of . . . the PHS Act and . . . the Internal Revenue Code. The notice is required to be provided automatically, free of charge. . . . [T]he approach of the Model Employer CHIP Notice is to provide a very brief description of premium assistance and rely on State contact information for State-specific program descriptions."(Employee Benefits Security Administration)

[Opinion] How to Get the Country to Solvency on Entitlements
Excerpt:"In 2013, when President Mitch Daniels, former Indiana governor, is counting his blessings, at the top of his list will be the name of his vice president: Paul Ryan. The former congressman from Wisconsin will have come to office with ideas for steering the federal government to solvency."(George F. Will via The Washington Post; free registration required)

[Official Guidance] Text (MS Word Document) of Model Notice for Employers to Use Regarding Eligibility for Premium Assistance Under Medicaid or CHIP
3 pages. Excerpt:"If you are eligible for health coverage from your employer, but are unable to afford the premiums, some States have premium assistance programs that can help pay for coverage. These States use funds from their Medicaid or CHIP programs to help people who are eligible for employer-sponsored health coverage, but need assistance in paying their health premiums. If you or your dependents are already enrolled in Medicaid or CHIP and you live in a State listed below, you can contact your State Medicaid or CHIP office to find out if premium assistance is available."(Employee Benefits Security Administration)

[Guidance Overview] DOL Publishes Model Employer CHIP Notice
Excerpt:"CHIPRA requires employers offering group health plans to notify all employees of their potential CHIPRA rights to receive premium assistance under a state's Medicaid or CHIP program. Employers may combine this notice with other information (e.g., open enrollment materials) as long as it goes to the entire employee population, not just participants. The requirement applies to employers that offer medical care benefits in any of 40 states that currently provide premium assistance."(Infinisource)

[Official Guidance] Model Notice from DOL for Employers to Use Regarding Eligibility: Premium Assistance Under Medicaid or the Children's Health Insurance Program (PDF)
4 pages. Excerpt:"On February 4, 2009, President Obama signed the Children's Health Insurance Program Reauthorization Act of 2009 (CHIPRA, Pub. L. 111?3). CHIPRA includes a requirement that the Departments of Labor and Health and Human Services develop a model notice for employers to use to inform employees of potential opportunities currently available in the State in which the employee resides for group health plan premium assistance under Medicaid and the Children's Health Insurance Program (CHIP). The Department of Labor (Department) is required to provide the model notice to employers within one year of CHIPRA's enactment. This document announces the availability of a Model Employer CHIP Notice."(Employee Benefits Security Administration)

Additional Information from CBO on Effect of Patient Protection and Affordable Care Act on Hospital Insurance Trust Fund (PDF)
4 pages. Excerpt:"This letter responds to questions you posed about the Congressional Budget Office's (CBO's) analysis of the effects of H.R. 3590, the Patient Protection and Affordable Care Act (PPACA), as passed by the Senate on December 24. In particular, you asked for clarification on several issues regarding the effect of the legislation on the Hospital Insurance (HI) trust fund, from which Medicare Part A benefits are paid."(U.S. Congressional Budget Office)

[Guidance Overview] CMS Update of Creditable Coverage and Late Enrollment Penalty Guidance
Excerpt:"The recent changes by CMS reflect a tightening of the procedures that apply in determining creditable coverage and the Part D plan sponsor's obligation to collect the [late enrollment penalty]."(Deloitte via BenefitsLink.com)

[Guidance Overview] Deadline Approaches for Submission of Creditable Coverage Disclosures to CMS (PDF)
Excerpt:"Group health plan sponsors that provide prescription drug coverage to Medicare Part D eligible individuals must annually disclose to the Centers for Medicare&Medicaid Services (CMS) whether such coverage qualifies as creditable or non-creditable. All plan sponsors that provide prescription drug coverage are required to make this disclosure, even if they do not make coverage available to retirees. Calendar year plans must submit this year's disclosure to CMS by March 1, 2010."(Buck Consultants)

Medicare Traps for the Still-Working 65-Year-Old
Excerpt:"Making the transition from an employer health plan to Medicare by way of COBRA coverage can be problematic. Each decision point along the way involves is subject to very specific deadlines. Miss one and you may find yourself in health insurance limbo."(Morningstar)

[Guidance Overview] CMS Update of Creditable Coverage and Late Enrollment Penalty Guidance in Medicare Prescription Drug Benefit Manual
Excerpt:"EBIA Comment: Most of the guidance is aimed at Part D plan sponsors, not at group health plan sponsors. However, both groups must comply with CMS standards. Group health plan sponsors must provide disclosure notices to help Part D eligible individuals make informed decisions about whether to enroll in a Part D plan. Part D plan sponsors must enroll individuals based on various criteria, including creditable coverage information from group health plan sponsors. Both groups must ensure that creditable coverage information is accurate, which should reduce the imposition of unnecessary [late enrollment penalties]."(Employee Benefits Institute of America)

Retiree Health Benefit Trends Among the Medicare-Eligible Population (PDF)
Excerpt:"This article examines the prevalence of retiree health benefits among Medicare-eligible retirees. It discusses the percentage of retirees with employment-based retiree health benefits over the 1994?2008 period. It also examines the trend for individually purchased coverage as a supplement to Medicare."(Employee Benefit Research Institute)

Medicare Part D: Taking Another Look at Employee Group Waiver Plans for Tax-Exempt Plan Sponsors (PDF)
2 pages. (Milliman)

Employers Warn of Cuts to Benefits Due to Tax Treatment of Medicare Part D Benefits
Excerpt:"Some of the biggest employers in the U.S. are warning that a provision in the Senate's proposed health-care overhaul could lead to cuts in retiree benefits and a sharp reduction in reported earnings next year. Companies including Boeing Co., Deere&Co., MetLife Inc. and Xerox Corp. plan to lobby Democratic leaders to drop the provision, which would change the tax status of payments for retiree health benefits."(The Wall Street Journal)

Medicare Part D 2010 Data Spotlight: A Comparison of PDPs Offering Basic and Enhanced Benefits
Excerpt:"Companies that sponsor Medicare Part D prescription drug plans are required to offer a basic benefit, either the standard Part D benefit defined by law or an actuarially equivalent benefit design. Plan sponsors can also offer plans with enhanced drug benefits. Enhanced plans are required to have a greater actuarial value than basic plans, but plans vary in the ways in which they improve coverage. This Part D Data Spotlight examines key differences between basic and enhanced Medicare stand-alone prescription drug plans (PDPs), including monthly premiums, cost sharing, and gap coverage."(Kaiser Family Foundation)

[Guidance Overview] Year-End Reminders for Health and Welfare Plans: 2009
Excerpt:"As an eventful 2009 draws to a close, this Update highlights federal developments affecting health and welfare plans, including new restrictions on the use of genetic information, coverage expansions, the COBRA subsidy program, new rights for military families, parity requirements for mental health coverage, Medicare secondary payer reporting, and changes in HIPAA privacy and security provisions made by the HITECH Act."(Mercer LLC)

Senate Majority Leader Harry Reid Says Medicare Part D'Doughnut Hole'Will Be Closed
Excerpt:"The House health reform bill closes the hole, but'the Senate, worried about the cost of its health care bill, only partially filled the gap in its bill.'Reid said the hole would be closed in conference committee . . . ."(Kaiser Family Foundation)

[Opinion] Financial Executives International Writes Congress on Tax Treatment of Medicare Part D Subsidy
Excerpt:"On Dec. 8, 2009 Financial Executives International wrote to Senate leadership on the proposed change to the tax treatment of the Medicare Part D subsidy. The letter, signed by FEI President and Chief Executive Officer Marie N. Hollein, was sent to Senate Majority Leader Harry Reid (D-Nev.) and Senate Minority Leader Mitch McConnell (R-Ky.)"(Financial Executives International)

Extending Medicare: Effects on Employers and Employees
Excerpt:"The recently proposed expansion of Medicare to cover individuals between the ages of 55 and 64 if they purchase the coverage could forge a final compromise Democrats are seeking in the Patient Protection and Affordable Care Act (H.R. 3590). So let's take a look at employees and employer-based plans in light of this proposal."(Wolters Kluwer)