Pay-Direct Drug Card
The announced change to our Medical Plan needs to be more fully understood as there may be some mistaken impressions regarding the full impact of this change. Elimination of the need to file claims for prescription drugs is a significant convenience. Possibly overlooked however, is that this specific change comes with a user price that is not immediately apparent.
PDD involves the non-drug and drug usage sections of the Medical Plan being separated into two distinct "deductible" arrangements. The historical deductible remains, as defined by the coverage Package you selected, but becomes confined to non-drug purchases. A new deductible (the dispensing fee) is introduced and is applicable to drug purchases alone. When considered in combination the impact of these two deductibles reduces the claimable expense for purchases. Thus the claim payment you historically received will in future be less due to this effect. The typical user of the plan will experience an increase in out-of-pocket costs. This will be most evident to those pensioners who annually file a significant dollar value of claims and perhaps this will also be the case for retirees from 25-30 years ago who are on a modest income. The described effect of these changes is in addition to the indicated 2012 premium increase of 3% applicable to all medical plan options.
One feature of the change is to add significant emphasis to the merit of seeking out the "lowest dispensing fee" pharmacy as this becomes a very real and direct personal cost saving. Also very important is your understanding of how the Medical Plan and PDD are providing for your needs. You should make it your business to fully understand how best to realize maximum personal advantage from this benefit plan.
Our assessment is that PDD, while providing a convenience, is an efficiency driven change. Managing costs associated with providing benefit plans is important to sustaining these plans over time. The current economic environment requires benefit plan costs to be controlled. While we support this latter goal in principle, it is critical that it reflect to the maximum possible extent the financial circumstance of the intended users/beneficiaries of the benefit plans.
The change has been discussed with INVISTA representatives suggesting that a route be found to implement PDD without increasing out-of-pocket costs for users, especially as it occurs concurrent with a general 3% premium increase. In addition several pensioners have written the company expressing disappointment with the impact of PDD. At this point we understand that INVISTA believes that planned change is the best available approach, thus we are not optimistic that INVISTA will reassess or modify the change. Perhaps sufficient numbers of us have not yet expressed our views. Should things change or we learn more we will keep you posted.
04/12/2011
