TAGCO Associates, LP, in association with Bay Bridge Administrators, LLC (BBA), offers TAGCO MET Employer Clients the option to offer Employer Group Medicare Part D Rx programs in tandem with TAGCO MET Group Retiree Medical plans.

The distinguishing feature of TAGCO MET Employer Group Medicare Rx plans is that such plans may be designed to offer first dollar co pay coverage and provide full Rx coverage thru the Donut Hole.  Generally speaking, such features are not available in the individual PDP (Prescription Drug Program) marketplace.

Moreover, such TAGCO MET Employer Rx programs include the Federal Government Rx subsidy, as the subsidy is paid to the participating Prescription Benefit Manager(s) (PBM) and used to effectively buy down or discount the monthly cost of the Medicare prescription drug.  Such CMS (Center for Medicare/Medicaid Services) subsidy effectively provides a tax-free benefit to the participating TAGCO MET Employer Client and/or its Medicare Retiree.

TAGCO Associates, LP and Bay Bridge Administrators, LLC (BBA) began offering Public and Private Sectors Employers EGWIP options in 2006 and now, in the wake of health care reform, is emphasizing TAGCO MET EGWIP program(s), as a direct and immediate approach to help reverse the negative effects of the Retiree Drug Subsidy (RDS), now taxable under the Patient Protection and Affordable Care Act (PPACA).

Employers that accepted the RDS under Medicare Part D are now faced with provisions that reduce the value of the subsidy, as a result of the PPACA legislation.

A more appealing approach for many companies is what is known as an 800 Series EGWP. Under this strategy, a company can contract with a third party Part D sponsor, who interacts with the Federal Government. The sponsor retains a fee but passes through the bulk of government payments in the form of lower premiums or direct payments to the employer.

The 800 Series EGWP offers a number of benefits, including the following:

• The contracted PDP sponsor shoulders the expenses associated with verifying compliance each year;
• The plan can be customized to match an Employer’s current benefits, allowing the company to meet its obligations, whether thanks to collective bargaining or to commitments made to employees in a non-union environment;
• It maximizes the Government contribution toward pharmaceutical expenses without imposing administrative burdens on the company;

As the ramifications and unforeseen consequences of the health reform act begin to unfold, many businesses will be looking for solutions to unexpected health benefit problems.

Call TAGCO Associates, LP today for more information on how and why an EGWIP Medicare Part D Rx program can benefit you and your Retirees.

TAGCO Associates, LP EGWIP Medicare Part D programs provide practical solutions that help Employers overcome the loss of tax deductible dollars associated with Retiree Rx programs