The HMO coverage would continue provided your plan or a successor continues offering coverage in your area through Medicare. The bill contains major payment reforms and incentives to encourage more preferred provider networks, HMOs and other health plans to serve Medicare patients in all parts of the country with coverage that would include prescription drugs. Employers have several options. They could decide to drop retiree coverage and leave it entirely to Medicare. Or they could redesign their retiree drug benefits to work with the new Medicare benefit, just as they do now with medical benefits. Or, they could continue their own coverage and claim a subsidy for drug costs.