IS YOUR FUND ENTITLED TO A SUBSIDY?  The Deadline Has Been Extended to October 31, 2005.

Does your fund offer prescription drug coverage to retirees?  If so, it may be entitled to a subsidy from the federal government.

Under the Medicare Modernization Act of 2003, Congress authorized a tax-free subsidy from the federal government for group health plan sponsors who continue to provide retiree drug coverage after the new "Medicare Part D" prescription drug benefit takes effect.  The subsidy equals 28% of the cost (within certain limits) of providing drug coverage to individuals who are eligible for Medicare Part D, but who instead remain covered by the group health plan.  The average subsidy payment per retiree is expected to be approximately $660.  The deadline has been extended to October 31, 2005 to submit your application to the Centers for Medicare and Medicaid Services (CMS).  Learn more.

IS YOUR FUND REQUIRED TO NOTIFY PARTICIPANTS?  Notices Must Be Issued By November 15, 2005.

Does your multiemployer health fund cover anyone who is eligible for Medicare (whether because of age or disability)? If so, your fund has new notice obligations, even if it does not cover retirees.

Even if your fund is not eligible for, or not interested in, the subsidy, if your fund covers anyone who is eligible for Medicare, additional obligations apply to your fund. Under the new law, all plan sponsors of a health plan that covers an individual who is eligible for the new "Medicare Part D" prescription drug benefit must issue a notice by November 15, 2005 indicating whether the plan's drug coverage is "creditable."  Learn more.