Elimination of Deduction for Retiree Prescription Drug Subsidy
Effective for tax years after December 31, 2012
The AlaskaCare Retiree Health Trust receives the federal subsidy for maintaining retiree prescription drug coverage equal to 28% of the plan’s prescription costs for eligible members who are covered by Medicare. Elimination of this subsidy will likely contribute to higher employer rates, but will not diminish the benefits enjoyed by retirees.
Legal Citation: PPACA § 9012 [PDF]