Employers Coalition on Medicare

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Employers Coalition on Medicare

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Employers Role

• Employer-based insurance covers more than 175
  million Americans
• Cost of employer-based health insurance premiums
  rose 12.7 from 2000 to 2001
• Cost of employer-based health insurance expected
  to rise by at least 15 in 2003
• By 2020, the number of individuals in the 55 to
  65 age group is expected to increase by 75, and
  by 2030, those over age 65 are expected to double

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Sources of Drug Coverage for Medicare
Beneficiaries, 1999
Medigap
40.4 million Medicare beneficiaries
No Drug Coverage
Employer- Sponsored
Medicaid
Other Public
Medicare HMO
Source CBO. Issues in Designing a Prescription
Drug Benefit for Medicare. October 2002.
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Percentage of Medium/Large Firms Offering a
Retiree Health Plan to Active Employees
Source Watson Wyatt Research Report 2002.
Retiree Health Benefits Time to Resuscitate?
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What is the Employers Coalition on Medicare?

• Group of 41 companies and 17 associations
  representing employer interests
• Collective voice of employers who support access
  to quality health care and prescription drugs for
  Medicare beneficiaries

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Member Companies

• International Paper Company
• IBM
• Jostens
• Kellogg Company
• Lucent Technologies, Inc.
• Monsanto
• Motorola
• Peabody Energy Co.
• Pitney Bowes
• PPG Industries, Inc.
• RAG American Coal Holdings, Inc.
• Raytheon
• Rohm and Haas
• SBC Communications
• Sears, Roebuck and Co.
• Southern Company
• Sprint
• Texas Instruments
• The Timken Company

3M Company Bank of America Cargill,
Incorporated Case New Holland Inc. Caterpillar
Inc. Coors Brewing Company Cox Enterprises,
Inc. Cummins Inc. DaimlerChrysler Deere
Company Delphi Corporation The Dow Chemical
Company Eastman Kodak Company Fisher Scientific
International Inc. Ford Motor Company General
Dynamics Corporation General Motors
Corporation Goodyear Tire Rubber
Co. Hewlett-Packard Company Honeywell
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Member Associations

American Benefits Council American Chemistry
Council The Business Roundtable Corporate Health
Care Coalition Employer Health Care Alliance
Cooperative ERISA Industry Committee
(ERIC) Financial Executives International Food
Marketing Institute International Mass Retail
Association National Association of
Manufacturers National Mining Association National
Retail Federation National Rural Electric
Cooperative Association LPA, the HR Policy
Association Printing Industries of America U.S.
Chamber of Commerce Washington Business Group on
Health
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Employers Coalition on Medicare Principles

• Be Linked to Reform A drug benefit should be
  established in the context of comprehensive
  reform of the Medicare program
• Plan design delivery
• Reimbursements payment to providers
• Information sharing disclosure
•  

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Employers Coalition on Medicare Principles

• 2) Provide Universal Access to Prescription Drugs
  All Medicare beneficiaries should be eligible
  for drug coverage subsidized by Medicare
• Coordinated with employer coverage
• Administered privately
• Affordable coverage
• Beyond catastrophic expenses

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Employers Coalition on Medicare Principles

• 3) Provide Flexible Options Medicare should be
  primary, but allow employers and beneficiaries
  the option to supplement Medicare coverage
  without penalty or additional financial
  liability.
• Employers to offer supplemental health coverage
• Employers to subsidize the premiums
• Employers to serve as the primary source of
  coverage
• Individuals to purchase high quality health care
  coverage

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Outlook

• House
• Mark-up in Ways and Means???
• Senate
• Committee action slated for week of June 7
• Floor action to follow