<nobr>Jul 27, 2004</nobr>

ERIC Commends CMS for Quickly Issuing Medicare Regulations

For Immediate Release

ERIC Commends CMS for Quickly Issuing Medicare Regulations

Washington, DC, July 26, 2004 - The ERISA Industry Committee (ERIC) praised today’s release of proposed regulations implementing Title I and Title II of the Medicare Modernization Act.

"The ERISA Industry Committee commends the Centers for Medicare and Medicaid Services (CMS) for issuing proposed Medicare regulations intended to create a sound regulatory framework for the nation’s most important health delivery systems for retirees," said Edwina Rogers, ERIC Vice President for Health Policy. "The regulations will give employers more flexibility to offer health care coverage to their retirees. We look forward to working with CMS to ensure that the new regulations will work effectively with employer-sponsored health plans."

The proposed regulations provide that an employer has four options to continue offering retiree health coverage:

• Provide prescription drug coverage through employment-based retiree health coverage.
  
• Provide prescription drug coverage that supplements, or “wraps-around,” the coverage offered under the Medicare prescription drug plan or Medicare Advantage drug plan in which the retirees (and their dependents) enroll.
  
• Subsidize the monthly beneficiary premium for whatever plan in which retirees (and their dependents) elect to enroll.
  
• Provide a prescription drug plan or Medicare Advantage-prescription drug plan either under contract with a prescription drug plan sponsor or Medicare Advantage organization or by directly sponsoring a prescription drug plan or a Medicare Advantage drug plan.
  

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