The Situation A southeastern state with more than 82,000 Medicare retirees and dependents recognized the need to lower its retiree health care and prescription drug costs. While migrating retirees from 3 self-funded plans they also desired to maintain a customized plan that would be actuarially equivalent to the self-funded plans that were being offered to the state’s pre- 65 active employees. They also wanted to ensure that state retirees woul

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