Retiree drug benefits may change with new Medicare coverage

A survey of American businesses shows a majority will continue the prescription-drug benefits they offer retired employees when the new Medicare coverage takes effect in 2006. But the survey by the Kaiser Family Foundation and Hewitt Associates found that when the new law is applied, 8% would discontinue drug coverage and 17% would reduce it. Another 8% already have eliminated the benefit this year, and 11% said they are considering the cut next year.

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