Employers' Coalition on Medicare

June 19, 2003

The Honorable Bill Frist
Majority Leader
United States Senate
Washington, DC 20510

Dear Mr. Leader:

The Employers' Coalition on Medicare (ECOM) represents more than 60 of the nation's leading employers and associations in support of comprehensive Medicare reform and prescription drug coverage for all Medicare beneficiaries (membership list attached). We write to express our opposition to so-called "maintenance of effort" mandates and additional benefit proposals that would exceed the $400 billion budget allocation.

Our coalition strongly believes that the best way to encourage employers to sponsor retiree health coverage is legislation that provides a range of affordable options, not mandates. We believe that the basic structure in the bill approved by a broad bipartisan vote in the Finance Committee is the right approach.

Today, employers voluntarily provide prescription drugs to 12 million of the nation's Medicare beneficiaries. ECOM supports the Senate Finance Committee's efforts to comprehensively reform the Medicare program to stabilize its financial condition and modernize its benefit and plan design. We are pleased that the Committee's product provides the flexibility needed for employers to coordinate with the Medicare program and allow them to use many of the private sector tools for innovation and quality improvement. Furthermore, Medicare enrollees with this coverage will not be treated differently from any other beneficiary, as they will all be entitled to receive the same benefits.

ECOM supports high-quality health plan choices for Medicare beneficiaries. Employers devote significant resources to drive quality improvements and innovation in their health and prescription drug plans. The Committee's framework for MedicareAdvantage offers beneficiaries and plan sponsors a much greater array of private plan choices with the payment stability needed to ensure enrollees' continuity of coverage from year to year.

Again, we would support additional efforts that are consistent with the fundamental direction of the Senate bill and within the $400 billion allocation to provide added flexibility and options for employers and retirees to obtain health coverage in the future. We would firmly oppose any efforts to mandate employers to maintain coverage.

Sincerely,

Edward J. Kaleta III
Chairman
Employers' Coalition on Medicare