Retiree drug benefits
Friday July 23, 2010
RDS deduction under healthcare reform
Steps to consider before the RDS deduction is eliminate
by Bill Boies, Amy M. Gordon, Susan M. Nash and Maggie McTigue
Employers that provide retiree prescription drug coverage should analyze the increased future tax liability and the current accounting charges necessary to retain retiree prescription drug coverage, and evaluate the practical and legal risks of eliminating this benefit.
Employers that currently receive a federal subsidy for providing retiree prescription drug coverage (Retiree Drug Subsidy) will no longer be able to take a deduction for those retiree drug expenses with respect to that subsidy as of 2013 under the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act of 2010 (PPACA).
See the rest of the story at http://ebn.benefitnews.com/eletter/profile/14/803.html?ET=ebnbenefitnews:e803:1614709a:&st=email
