Beyond the subsidy: Medicare Part D employer options

The Medicare Modernization Act, now more than a year old, is opening up an array of possibilities for employers in dealing with retiree medical benefits. Many employers are beginning to look beyond the question of whether to accept Medicare's prescription drug subsidy and are more broadly considering how to shape their retiree health plans. This article describes the options available to employers now that Medicare Part D is in place. Through this analysis, the authors also explain how the choices employers make could affect retiree medical benefits and workforce planning issues.