Labor First specializes in the customization, analysis, selection, implementation, and ongoing management of Employer Group Waiver Plans (EGWPs) for multiemployer plan sponsors. Since it was enacted in 2006, the Retiree Drug Subsidy (RDS) had been the popular approach for providing prescription drug benefits to Medicare eligible retirees. In comparison to RDS, EGWPs present an opportunity for plan sponsors to reduce retiree drug costs through additional federal subsidies and tax advantages.

So why haven’t all multiemployer plan sponsors made the transition to an EGWP? The answer is simple: EGWPs are associated with many misconceptions. Below are some common myths pertaining to EGWPs:

An EGWP will not save as much money as a RDS

Funds typically save 35-40% when transitioning from RDS to EGWP.  An EGWP contains 2 additional subsidies: Federal Catastrophic Insurance & Manufacturer Discounts in the coverage gap. Some carriers do not manage EGWPs correctly; with the right carrier the savings can be substantial.

Switching to an EGWP will cause too much disruption

Our company specializes in seamless transitions to EGWPs with little to no disruption to your members.  We can customize the EGWP to mimic the current plan you have in place. EGWPs are only available to groups and offer options such as coverage gap protection, custom catastrophic, a robust formulary with drugs not covered under Part D, and unlimited customizable copay options. Additionally, our Retiree Advocates offer member support through the transition to an EGWP and beyond to ensure members experience little to no disruption.

An EGWP contains a Coverage Gap (Donut Hole)

EGWPs can be customized to include coverage gap protection. Coverage gap protection maintains the designated plan copays with no impact to members in the dount hole.

An EGWP causes you to lose control of the benefit

Funds have the ability to personalize the benefit design, copays, and coverage levels. The plan can be constructed to imitate the current prescription drug benefit or adjusted to meet member needs. Although EGWPs are governed by the Center for Medicare & Medicaid Services (CMS), we have implemented solutions to help mitigate this. Our Retiree Advocates work within regulations to ensure members receive the prescription drug benefit they are accustomed to.

Contact us for more information.