For health plans that offer their retired employees prescription drug benefits, new rules from the Centers for Medicare and Medicaid Services (CMS) make the option of an Employer Group Waiver Plan with a wraparound supplemental plan (EGWP/wrap) attractive as a way to achieve significant plan savings.

Many employers have heard about this opportunity, but exactly how advantageous is the EGWP/wrap option, and how can they change to it from current plans, such as those involving the retiree drug subsidy (RDS)?