Prescription drug coverage for retirees


Sen. Chuck Grassley, chairman of the Committee on Finance, made the following comment on a new Employee Benefit Research Institute (EBRI) analysis showing that any Medicare prescription drug benefit is likely to have a very minimal effect on employer-provided prescription drug coverage.

"This report takes the wind out of the sails of those who are attempting to use the employer issue to sink prescription drug benefits for seniors. This analysis -- from a credible, experienced group -- is based on the same level of definitive data as the Congressional Budget Office estimate. It shows that if Congress does nothing, some employers will drop their prescription drug coverage for retirees. That's inevitable. But if we enact any government prescription drug benefit, the impact on employer-provided drug benefits should be minimal. Still, our goal in Congress has to be to bring drug coverage to those who have none and to preserve coverage for those who already have it. I'll continue to advocate several Senate-approved provisions to encourage employers to retain their prescription drug programs for retirees."

The text of the EBRI materials is attached.