TITLE I--MEDICARE PRESCRIPTION DRUG BENEFIT
SEC. 111. STUDY ON EMPLOYMENT-BASED RETIREE HEALTH COVERAGE.
(a) STUDY- The Comptroller General of the United
States shall conduct an initial and final study under this subsection to examine
trends in employment-based retiree health coverage (as defined in 1860D-22(c)(1)
of the Social Security Act, as added by section 101), including coverage under
the Federal Employees Health Benefits Program (FEHBP), and the options and incentives
available under this Act which may have an effect on the voluntary provision
of such coverage.
(b) CONTENT OF INITIAL STUDY- The initial study
under this section shall consider the following:
(1) Trends in employment-based retiree
health coverage prior to the date of the enactment of this Act.
(2) The opinions of sponsors of employment-based
retiree health coverage concerning which of the options available under this
Act they are most likely to utilize for the provision of health coverage to
their medicare-eligible retirees, including an assessment of the administrative
burdens associated with the available options.
(3) The likelihood of sponsors of employment-based
retiree health coverage to maintain or adjust their levels of retiree health
benefits beyond coordination with medicare, including for prescription drug
coverage, provided to medicare-eligible retirees after the date of the enactment
of this Act.
(4) The factors that sponsors of employment-based
retiree health coverage expect to consider in making decisions about any changes
they may make in the health coverage provided to medicare-eligible retirees.
(5) Whether the prescription drug plan
options available, or the health plan options available under the Medicare
Advantage program, are likely to cause employers and other entities that did
not provide health coverage to retirees prior to the date of the enactment
of this Act to provide supplemental coverage or contributions toward premium
expenses for medicare-eligible retirees who may enroll in such options in
the future.
(c) CONTENTS OF FINAL STUDY- The final study
under this section shall consider the following:
(1) Changes in the trends in employment-based
retiree health coverage since the completion of the initial study by the Comptroller
General.
(2) Factors contributing to any changes
in coverage levels.
(3) The number and characteristics
of sponsors of employment-based retiree health coverage who receive the special
subsidy payments under section 1860D-22 of the Social Security Act, as added
by section 101, for the provision of prescription drug coverage to their medicare-eligible
retirees that is the same or greater actuarial value as the prescription drug
coverage available to other medicare beneficiaries without employment-based
retiree health coverage.
(4) The extent to which sponsors of
employment-based retiree health coverage provide supplemental health coverage
or contribute to the premiums for medicare-eligible retirees who enroll in
a prescription drug plan or an MA-PD plan.
(5) Other coverage options, including
tax-preferred retirement or health savings accounts, consumer-directed health
plans, or other vehicles that sponsors of employment-based retiree health
coverage believe would assist retirees with their future health care needs
and their willingness to sponsor such alternative plan designs.
(6) The extent to which employers or
other entities that did not provide employment-based retiree health coverage
prior to the date of the enactment of this Act provided some form of coverage
or financial assistance for retiree health care needs after the date of the
enactment of this Act.
(7) Recommendations by employers, benefits
experts, academics, and others on ways that the voluntary provision of employment-based
retiree health coverage may be improved and expanded.
(d) REPORTS- The Comptroller General shall
submit a report to Congress on--
(1) the initial study under subsection
(b) not later than 1 year after the date of the enactment of this Act; and
(2) the final study under subsection
(c) not later than January 1, 2007.
(e) CONSULTATION- The Comptroller General shall
consult with sponsors of employment-based retiree health coverage, benefits
experts, human resources professionals, employee benefits consultants, and academics
with experience in health benefits and survey research in the development and
design of the initial and final studies under this section.
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