The group retiree healthcare market is drastically changing. Factors such as rising insurance costs, baby boomers (reaching retirement age), volatile investments and aging membership levels have created a challenging environment for many plan sponsors. In some cases the unfunded liability associated with retiree healthcare has placed the future of these benefits in jeopardy.
Post-retirement healthcare benefits serve as the cornerstone helping to maintain generational solidarity across the membership of union and public sector benefit plans. However, the pressure to reduce financial liability has forced many clients to reexamine how they provide these health benefits to their retired participants. Many plan sponsors are seeking solutions that reduce financial liability, but how do you accomplish this while still maintaining member satisfaction and the one-on-one touch retirees have grown to know?
Labor First is the leader in structuring seamless healthcare solutions for group retiree health plans. We fully understand that the challenges most health plans face are unique to each population. That is why our product suite below and proprietary administrative technology & service platform is built to adapt to your group’s retirement benefit needs. From the initial product selection and analysis through implementation, our team of licensed and highly trained professionals work to serve as an extension of your staff.
Traditionally, many plan sponsors managed their post-65 retiree population by offering them the same group medical plans provided to active workers. While this approach has historically worked well, the associated liability and administrative complexity can place a significant burden on fund administrators and their professional staff. Properly implementing a Medicare Medical Supplement can relieve not only administrative burden but financial liabilities as well.
The Retiree Drug Subsidy (RDS) has been the preferred approach for plan sponsors since the beginning of Medicare Part D. The Retiree Drug Subsidy allows funds to receive federal subsidies that help prescription drug plans provide retirees with the same benefits they had while working. However, regulatory changes created an alternative program for providing retirees with prescription drug coverage: The Employer Group Waiver Plan (EGWP).
Since Medicare Advantage (MA) plans were first launched in 2003, many plan sponsors have been unsure if they are the right choice to cover retiree healthcare needs. Medicare Advantage plans are a type of health benefit offered by private insurance companies that contract directly with Medicare to provide Part A (hospital) and Part B (medical) benefits. Some Medicare Advantage plans offer optional Part D (prescription drug) coverage, referred to as “MAPD.”