The term prescription drug plan refers to a benefit an employer may offer to both existing employees as well as retirees. Prescription drug plans can be a valuable benefit to current employees, while plans offered to retirees that are age 65 and older may supplement what is available through Medicare Part D (drug coverage).
An employer-sponsored prescription drug plan is a valuable benefit if an employee, or a member of their family, has a pre-existing medical condition. While the benefits offered under these plans are typically comprehensive, they normally do not provide coverage for medications the Food and Drug Administration (FDA) has not approved as well as those used for cosmetic purposes.
Copayments often apply, and the amount of cost sharing paid by the employee can vary with the type of drugs dispensed as well as how they're delivered:
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