Most Employers Keep Retirees On Company Drug Coverage

While many experts predicted that employers would drop prescription drug benefits for retirees once the Medicare Part D program was underway, a recent study shows that most are not electing to do so. According to the Houston Chronicle, 82% of companies retained prescription drug coverage for their retirees in 2006, while 78% plan to do so for 2007. This study, conducted by the Kaiser Family Foundation and Hewitt Associates LLC, does contain some bad news, however - premiums for retiree coverage are rising. 74% of companies raised premiums for retirees under age 65, while 58% raised them for retirees 65 and older. So the bottom line seems to be that most retirees can remain on their company's health benefits plan, if they can afford to.