There are many benefits to moving from Retiree Drug Subsidy (RDS) to an Employer Group Waiver Plan (EGWP):
✔️ Higher subsidies – EGWPs can provide more money in subsidies, as they can receive both Part D subsidies and manufacturer rebates, potentially offering significantly more than RDS plans.
✔️ Access to drug discounts – EGWPs can directly benefit from new Part D price negotiations and discounts on brand-name drugs that RDS plans cannot.
✔️ Cost-sharing and reinsurance – EGWPs can have better federal reinsurance protection for catastrophic claims, which are not subject to a cost limit, unlike the limits in RDS plans.
✔️ Customization – EGWPs offer greater flexibility in plan design, allowing for custom formulary enhancements to match a sponsor's specific needs or to better align with existing benefits.
