"Medicare's drug benefit will be a voluntary program when it is fully implemented in 2006," stresses Legislative Chairman Bill Hill. "We expect that when members see the details, they will say 'no thanks'. "

Members may have heard that employers may try to eliminate entirely Medicare supplement plans once the program is established. "Members should remember that state law requires the Commonwealth and the municipalities to offer a Medicare supplement plan (for example, OME and Medex)," according to Hill.

One area of future concern, is allowing private insurance companies to compete with the Medicare program itself. While the Congress proposes a pilot program in 2010, this may open a door that could cause Medicare's costs to soar in the future.

"The jury will definitely be out for some time on this particular issue. But it should be watched closely if and when a pilot program is implemented several years from now," comments Hill.

Over the past two years, we have been following the controversy surrounding the effort, primarily in the private sector, to allow employers to provide their Medicare-eligible retirees (those age 65 and older) with less health insurance benefits than those under age 65. You may recall that in a case involving Erie County, PA retirees, the Federal courts found that employers could be violating the ADEA (Age Discrimination in Employment Act) if they provided their Medicare retirees with an inferior health plan at a higher cost. (See January 2001 Voice.)

It was later reported (November 2002 Voice) that private employers were pressing the federal government to allow them to reduce or end health insurance benefits for Medicare retirees without violating the ADEA. These efforts continued during Congress' debate on the drug benefit bill. But, fortunately they proved unsuccessful and appear to have had the opposite effect. The legislation will maintain the ADEA protections for Medicare retirees.