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Center for Medicare and Medicaid Services (CMS) Approves “Sterling Retiree Prescription Drug Plan” as a national Employer Prescription Drug Plan for Medicare Part D
“Sterling Retiree Prescription Drug Plan” is a
partnership between National Employee Benefit Companies (NEBCO) and
Sterling Life Insurance Company
A Prescription Drug Plan to offer coverage and administration services exclusively to employers and unions on a national level
Warwick, RI – October 4, 2005 – National Employee Benefit Companies (NEBCO), a leading employee benefit wholesale insurance brokerage firm and third-party administrator, today announced that the company, in conjunction with its associate, Sterling Life Insurance Company, has been approved by the Centers for Medicare and Medicaid Services (CMS) as a national employer Prescription Drug Plan (PDP). An agency of the federal Department of Health and Human Services, CMS administers the Medicare program. The approval enables the companies to offer prescription drug programs to Medicare recipients under the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (commonly known as Medicare Part D). Sterling Life Insurance Company will function as the insurance carrier, and NEBCO will act as the plan administrator. Together they will offer prescription drug coverage under Medicare beginning January 1, 2006. Medicare recipients may begin enrolling in the new plan on November 15, 2005.
“We are very excited to obtain approval from CMS,” said Sam Fleet, President and CEO of NEBCO. “This enables us to bring information about our specialized retiree health benefit services to employers who want to take full advantage of the new Medicare prescription drug benefit.”
Specializing in the administration of employer health plans for retirees, NEBCO offers customized PDP solutions to employers and their retirees. As such, the NEBCO / Sterling association represents a PDP to offer coverage and administration services exclusively to employers and unions on a national level.
“Sterling is pleased to be working with NEBCO, a leader in providing retiree coverage”, says Debbie Ahl, CEO and President of Sterling. “Offering tailor made PDP coverage, complements Sterling’s other programs designed for employer retirees.”
In addition, NEBCO through its insurance partners have supplemental programs that employers may adopt to integrate with “Sterling Retiree Prescription Drug Plan” to provide seamless program and claims adjudication. CMS recently stated that working with a PDP that provides both base prescription drug coverage under Medicare D coupled with a supplement allows plan sponsors to achieve significant savings due to Medicare being the primary payor.
Outsourcing the administration of Medicare D and a supplement carries with it the potential for significant savings not only because Medicare is the primary payor, but because much of the risk is shifted to the PDP. Removing the administrative burden associated with retiree health benefits can significantly reduce employer costs. Additionally, segregating retiree health insurance into a third party insured plan enables companies to manage these commitments, and provide a tool to reduce balance sheet liabilities.
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A Prescription Drug Plan to offer coverage and administration services exclusively to employers and unions on a national level
Warwick, RI – October 4, 2005 – National Employee Benefit Companies (NEBCO), a leading employee benefit wholesale insurance brokerage firm and third-party administrator, today announced that the company, in conjunction with its associate, Sterling Life Insurance Company, has been approved by the Centers for Medicare and Medicaid Services (CMS) as a national employer Prescription Drug Plan (PDP). An agency of the federal Department of Health and Human Services, CMS administers the Medicare program. The approval enables the companies to offer prescription drug programs to Medicare recipients under the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (commonly known as Medicare Part D). Sterling Life Insurance Company will function as the insurance carrier, and NEBCO will act as the plan administrator. Together they will offer prescription drug coverage under Medicare beginning January 1, 2006. Medicare recipients may begin enrolling in the new plan on November 15, 2005.
“We are very excited to obtain approval from CMS,” said Sam Fleet, President and CEO of NEBCO. “This enables us to bring information about our specialized retiree health benefit services to employers who want to take full advantage of the new Medicare prescription drug benefit.”
Specializing in the administration of employer health plans for retirees, NEBCO offers customized PDP solutions to employers and their retirees. As such, the NEBCO / Sterling association represents a PDP to offer coverage and administration services exclusively to employers and unions on a national level.
“Sterling is pleased to be working with NEBCO, a leader in providing retiree coverage”, says Debbie Ahl, CEO and President of Sterling. “Offering tailor made PDP coverage, complements Sterling’s other programs designed for employer retirees.”
In addition, NEBCO through its insurance partners have supplemental programs that employers may adopt to integrate with “Sterling Retiree Prescription Drug Plan” to provide seamless program and claims adjudication. CMS recently stated that working with a PDP that provides both base prescription drug coverage under Medicare D coupled with a supplement allows plan sponsors to achieve significant savings due to Medicare being the primary payor.
Outsourcing the administration of Medicare D and a supplement carries with it the potential for significant savings not only because Medicare is the primary payor, but because much of the risk is shifted to the PDP. Removing the administrative burden associated with retiree health benefits can significantly reduce employer costs. Additionally, segregating retiree health insurance into a third party insured plan enables companies to manage these commitments, and provide a tool to reduce balance sheet liabilities.
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