Mark Manquen

2010 Health Care Reform: Part D Subsidy to be taxed starting in 2013 The Medicare Modernization Act of 2003 ("MMA 2003") created the Medicare Part D prescription drug benefit for Medicare eligible retirees. The law also included a subsidy for employers who provide retiree drug benefits that are at least equal in value to the Part D benefit. The law was intended to provide an incentive to employer plans to keep such plans in place.

SO HEALTH CARE REFORM HAS FINALLY PASSED! Yet, missed amongst the clamor surrounding, "political partisanship", "the funding of abortion" or "the Cadillac tax" there is a significant subsidy that may provide relief to plan sponsors struggling to reign in retiree healthcare costs. This provision, referenced as the "Reinsurance Program", creates a "reinsurance" subsidy for plan sponsors of retiree health plans providing coverage for pre-Medicare retirees over the age of 55.