Corporations have been actively working to reduce healthcare costs for many years. However, even when every aspect of healthcare costs for active employees has been reviewed, changed, modified and consolidated with some success, healthcare costs continue to rise.
One of the most overlooked areas that can significantly impact the overall group health plan is the pre-65 retiree population.
Here are some interesting facts:
- Optimal coordination of Medicare and retiree healthcare can lead to a 10-15 % decrease in overall ongoing healthcare costs for employers.
- There are approximately 15 million pre-65 retirees covered by employer-sponsored group health plans and millions more from state and local government plans.
- Pre-65 retiree medical costs are 1.5 times higher than that of active employees.
- Moving primacy of pre-65 retirees to Medicare lowers the risk profile of the remaining healthcare covered population.
Profit Enhancement Group – Benefits Divisions’ Services has been providing Medicare coordination services to Fortune 100, State and Local Governments and Unions for over 25 years. These organizations have utilized our services for significant costs savings as it relates to pre 65-retiree healthcare without negatively affecting the employee.