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PHIP warns of large Medicare Advantage cost increase; seeks higher employer contribution and one-time trust withdrawal
Summary
PHIP officials told the committee changes in CMS funding and the Inflation Reduction Act are driving a projected sharp rise in Medicare Advantage prescription drug plan costs for retirees, prompting a request to raise the employer contribution rate and to withdraw up to $119 million from the retiree healthcare trust.
Officials from the Public Education Employees' Health Insurance Program (PHIP), governed with the Retirement Systems authority, told the Ways and Means Education committee that federal changes and drug-cost shifts are driving a sharp increase in costs for Medicare-eligible retirees and prompted a funding request in the governor's budget.
Nia Scott of RSA/PHIP presented the program's finances and said the program has managed with a flat employer contribution rate of $800 per member per month since 2017. She told the committee that PHIP spent about $57 million on its Medicare Advantage prescription drug plan (MAPDP) in…
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