Retirees may lose all health care benefits due to Part D enrollment
The New York Times today reports on a signficant problem that has developed in connection with the Part D Medicare program for retirees who currently have health coverage through their former employers:
Louis A. deBottari, a 78-year-old retired aerospace worker withample drug coverage in his health plan, recently opened an envelopefrom Boeing, hoping to be reassured.
Thenotice, sent to about 100,000 Boeing retirees and their dependents,discussed the new Medicare drug insurance program that begins inJanuary and what it means for retirees already covered by the company’shealth plan.
Louis A. deBottari, a Boeing retiree, will continue to use thecompany’s drug insurance instead of switching to the new Medicare drugprogram.“In general,” Mr. deBottariread, “your Boeing prescription drug coverage is more generous thanstandard Medicare prescription drug coverage.” So far, so good.
Buta bit farther down came a warning, if Mr. deBottari was nonethelesstempted to give the new Medicare program, called Part D, a try: “YourBoeing prescription drug coverage is part of your Boeing retireemedical plan. If you cancel your Boeing prescription drug coverage,your Boeing medical coverage also will be canceled.”
Many otherretirees fortunate enough to already have drug coverage are receivingsimilar warnings from their former employers as the new Medicare drugbenefit approaches.
This was not necessarily what Congressintended when it passed the Medicare law two years ago, extending druginsurance to more than 40 million older and disabled Americans.