Why is there one medical plan option for retirees under age 65, but two medical plan options for retirees age 65 and over?
The coverage options available to retirees were selected in an effort to keep the Pfizer Retiree Medical Plan affordable for retirees and for Pfizer. Once retirees reach age 65, Medicare becomes their primary coverage. Some retirees may find that Medicare Parts A and B meet their needs; therefore, we offer the “Prescription Only” option as a means of providing retirees with the option of only receiving prescription drug benefits through Pfizer-sponsored coverage and medical coverage through Medicare. Pfizer also offers a “Medicare Carve Out” option for those retirees age 65 and over who would like Pfizer-sponsored medical coverage that supplements the coverage provided by Medicare Parts A and B. When retirees reach age 65 and become eligible for Medicare, the Pfizer Retiree Medical Plan provides coverage that is secondary to Medicare through the “Medicare Carve Out” option. Why don’t contributions go down more significantly when retirees turn 65? The way contributions are structured is
