More on the Busicare Plan
The Medicare prescription-drug law passed late last year is having a healthy effect on the outlook for corporate finances .Course not. Next thing you know they'll be using FICA overpayments to provide tax cuts for the wealthy ... hmmm.
Within the past few weeks, a handful of large companies have reported they expect to collectively save more than $2.5 billion over time, thanks to the new government subsidy for employers that offer prescription-drug benefits to retirees.
The subsidy has become controversial because although it was intended to encourage employers to continue to provide retiree health coverage, it doesn't discourage them from cutting benefits and shifting more costs to retirees. What's more, the language of the legislation indicates that employers can be reimbursed even for amounts retirees pay.[Nitpicker emphasis]