Mercer’s National Survey of Employer-Sponsored Health Plans takes an annual look at health plan costs and practices in the US. The survey, completed by more than 2,800 employers in 2011, has tracked trends in retiree medical coverage for more than two decades. In response to opportunities created by health care reform, some employers are now using or considering the use of exchanges to provide this important benefit.
“Driven by aging workforces and organizations’ continued need to control the costs of their benefit programs, retiree medical exchanges have become an increasingly attractive option for employers for providing benefits to their retirees, especially those who are Medicare eligible,” says Derek Guyton, a Partner in Mercer’s Employee Health & Benefits consulting business.
“Using an exchange, companies can set up Health Reimbursement Accounts (HRA) if the benefit is to be partially or fully funded by the employer,” he adds. “Retirees then can select from a range of medical and prescription drug plans, using available HRA funds to help pay for the benefit costs. This helps to control costs and limit administrative burdens for employers, and provides retirees with the coverage they need.”
Learn more about trends in retiree medical coverage.
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To learn more about retiree health exchanges, visit www.mercer.com/exchangesuite.