Warning.Retire drug plans to go away

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SPQR's picture
Joined: 12/15/2007

If you have prescription drug coverage as a retiree from your former employer you need to understand the government allows them a tax break that is in reality is a subsidy. Your former employer is going to lose that subsidy in 2012. The following is from. CNN.

"• The Employer Medicare Part D subsidy deduction will be eliminated. Employers will lose the tax deduction for subsidizing prescription drug plans for Medicare Part D-eligible retirees."

Unless you are retired from the government your former employer is probably going to send you a letter letting you know your drug coverage is going away and you will need to sign up for Medicare part D, which, by the way, is very poor until 2020 when the "doughnut hole goes away.

If you do work for the government don't worry be happy the rest of us have got you covered.