The Michigan Chamber is urging the federal Centers for Medicare and Medicaid Services (CMS) to stop the proposed cuts to employer-sponsored Medicare Advantage (MA) Retiree Coverage, also known as Employer Group Waiver Plans (EGWP).
Nationally, employers, including state and local governments along with union sponsors, use customized EGWP products to finance retiree coverage for almost 3.2 million beneficiaries, or more than 18% of all Medicare Advantage enrollees. The CMS proposed cuts, which could be finalized as early as April 4, would reduce funding to EGWPs by 2.5 to 4.5 percent and negatively impact nearly 305,000 Michigan retirees.
An ever-increasing number of employers are choosing EGWPs because they offer innovative integrated care and offer reduced out-of-pocket costs and financial protections, including reduced premiums for Part B and D, out-of-pocket maximums and lower cost-sharing on medical and pharmacy benefits than traditional fee-for-service plans. The Michigan Chamber opposes the proposed cuts because it would make it harder for many employers to provide comprehensive and affordable health benefits to retirees.
The Michigan Chamber is part of a large, national coalition on this issue. Read more.