Large, stable employer has to compete on a global scale. Employee benefits erode, for active employees and retirees. This year, a dramatic change to prescription drug benefits may warrant an entirely new strategy and approach.
Group Plans Used to Have No Coverage Gap
The point is that group plans frequently eliminated the Coverage Gap. That point alone may have led a retiree to choose to stay enrolled in the employer's plan. However, the employer has created a new structure of prescription drug benefits. The previous superiority of prescription drug benefits may be eliminated. If this is the case, then the price and extent of medical (non Rx) benefits need to be examined.
Can You Change? Yes.
For those that determine that the existing group plan should be cancelled, a private Medicare alternative (Medicare Advantage / Medigap) can be selected. A stand-alone PDP (Medicare Part D plan) can be selected. The person would qualify for a Special Election Period, which allows this selection when a group plan is cancelled, whether or not that cancellation is voluntary or involuntary.
Problem: Timing
Companies frequently have a very limited calendar, i.e. their enrollment/selection period is very tightly defined, and may/may not coincide with the Medicare calendar. As a result, your group benefits should be examined as soon as you receive it. This is one of those instances when a qualified advisor may need to be contacted.
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