AEP keeps retirees informed on prescription drug coverage changes planned for 2013

AEP recently mailed a letter to all company Medicare-eligible retirees and/or their spouses informing them of a change in the delivery of their prescription drug benefits which will go into effect Jan. 1, 2013. AEP will keep retirees informed of these changes as the year progresses, particularly during the Annual Enrollment period later this year.

According to Curt Cooper, director-employee benefits, AEP has decided to convert the current prescription drug coverage for retirees and/or their eligible dependents age 65 or older to a group-based, company-sponsored Medicare Part D Plan, effective Jan. 1, 2013. AEP retirees 65 and older will still have group benefits through AEP to supplement traditional Medicare (Parts A and B), and AEP will continue to subsidize the cost of retiree medical and prescription drug coverage. These changes are being driven primarily by health care reform revisions to Medicare funding for employers who offer prescription drug coverage to retirees.

“Please be assured that AEP evaluated the current plan and made the decision to change carefully — with the needs of both retirees and the company in mind,” said Cooper. “This change will allow AEP to take advantage of the enhancements in the Medicare marketplace resulting in additional governmental funding and continue to offer valuable benefits for current and future retirees.”