Medicare RDS Tax May Prompt Employer Coverage Shifts, Focus On Rx Costs
Prescription drug coverage for millions of retirees currently provided by for-profit employer plans may change in the coming years as a result of the new tax on the Medicare retiree drug subsidy, signed into law as part of health reform March 23
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A new Medicare Part D policy on calculating the 50% discount on branded drugs in the coverage gap will not allow for reduced manufacturer payments when beneficiaries are enrolled in employer group waiver plans, despite arguments from drug firms.
The upcoming tax on the Medicare retiree drug subsidy will be less harmful to large employers than recent accounting figures from a number of firms would suggest, House Energy and Commerce Committee staff report April 14.
Strategies To Ease Short-Term Earnings Pain From Health Reform Include Cost-Cutting, Diversification
With market-based fees and increased Medicaid rebates set to start several years before drug manufacturers will see any benefit of an expanded market from health care reform, consultants are suggesting several ways to counter the short-term negative effect on earnings, including continued cost-cutting and diversification