1. Employers’ Coalition on Medicare

2. Employers’ Role  Employer-based insurance covers more than 175 million Americans  Cost of employer-based health insurance premiums rose 12.7% from 2000 to 2001  Cost of employer-based health insurance expected to rise by at least 15% in 2003  By 2020, the number of individuals in the 55 to 65 age group is expected to increase by 75%, and by 2030, those over age 65 are expected to double

3. Employers’ Coalition on Medicare Sources of Drug Coverage for Medicare Beneficiaries, 1999 No Drug Coverage Medicaid Medicare HMO Employer- Sponsored Medigap Other Public Source: CBO. Issues in Designing a Prescription Drug Benefit for Medicare. October 2002. 40.4 million Medicare beneficiaries

4. Employers’ Coalition on Medicare Percentage of Medium/Large Firms Offering a Retiree Health Plan to Active Employees Source: Watson Wyatt Research Report 2002. Retiree Health Benefits: Time to Resuscitate?

5. Employers’ Coalition on Medicare What is the Employers Coalition on Medicare?  Group of 41 companies and 17 associations representing employer interests  Collective voice of employers who support access to quality health care and prescription drugs for Medicare beneficiaries

6. Employers’ Coalition on Medicare 3M Company Bank of America Cargill, Incorporated Case New Holland Inc. Caterpillar Inc. Coors Brewing Company Cox Enterprises, Inc. Cummins Inc. DaimlerChrysler Deere & Company Delphi Corporation The Dow Chemical Company Eastman Kodak Company Fisher Scientific International Inc. Ford Motor Company General Dynamics Corporation General Motors Corporation Goodyear Tire & Rubber Co. Hewlett-Packard Company Honeywell International Paper Company IBM Jostens Kellogg Company Lucent Technologies, Inc. Monsanto Motorola Peabody Energy Co. Pitney Bowes PPG Industries, Inc. RAG American Coal Holdings, Inc. Raytheon Rohm and Haas SBC Communications Sears, Roebuck and Co. Southern Company Sprint Texas Instruments The Timken Company UPS Verizon Member Companies

7. Employers’ Coalition on Medicare American Benefits Council American Chemistry Council The Business Roundtable Corporate Health Care Coalition Employer Health Care Alliance Cooperative ERISA Industry Committee (ERIC) Financial Executives International Food Marketing Institute International Mass Retail Association National Association of Manufacturers National Mining Association National Retail Federation National Rural Electric Cooperative Association LPA, the HR Policy Association Printing Industries of America U.S. Chamber of Commerce Washington Business Group on Health Member Associations

8. Employers’ Coalition on Medicare 1)Be Linked to Reform – A drug benefit should be established in the context of comprehensive reform of the Medicare program: Plan design & delivery Reimbursements & payment to providers Information sharing & disclosure Employers’ Coalition on Medicare Principles

9. Employers’ Coalition on Medicare 2) Provide Universal Access to Prescription Drugs – All Medicare beneficiaries should be eligible for drug coverage subsidized by Medicare Coordinated with employer coverage Administered privately Affordable coverage Beyond catastrophic expenses Employers’ Coalition on Medicare Principles

10. Employers’ Coalition on Medicare 3) Provide Flexible Options – Medicare should be primary, but allow employers and beneficiaries the option to supplement Medicare coverage without penalty or additional financial liability. Employers to offer supplemental health coverage Employers to subsidize the premiums Employers to serve as the primary source of coverage Individuals to purchase high quality health care coverage Employers’ Coalition on Medicare Principles

11. Employers’ Coalition on Medicare Outlook House:  Mark-up in Ways and Means??? Senate:  Committee action slated for week of June 7  Floor action to follow