A Better Way To Cover Retiree Drug CostsMany large and midsize employers are excited about the new federal subsidy for qualified retiree pharmacy programs.

But benefits advisors should make sure to inform clients that another strategy, setting up a pharmacy supplemental plan, could generate more savings and less risk.

When members of Congress were evaluating the cost of adding a Medicare pharmacy benefit provision to the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (MMA), they wanted to avoid financing the benefit for retirees who already were receiving pharmacy coverage through an employer-sponsored plan.

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