Lincolnshire, Ill. — March 26
A new analysis by human resources consultancy Aon Hewitt underscores the value and significant savings opportunities that retiree health exchanges can offer both plan sponsors and retirees.
A new Aon Hewitt survey of 550 companies covering nearly 4 million retirees shows more than 60 percent of employers are reassessing their long-term retiree health strategy in response to rising health care costs and mandated changes from the Patient Protection and Affordable Care Act (PPACA).
About 20 percent of employers currently offer guided access to the individual Medicare retiree plan market through an individual health exchange, and another two-thirds are considering this strategy for the future. According to Aon Hewitt, employers can potentially reduce their gross retiree medical costs by 20-50 percent per year by transitioning retirees to this type of model.
In addition to having access to a wider range of options, Aon Hewitt estimates that retirees can save an average of $1,000 each year when purchasing their health benefits through individual retiree exchange.
Source: Aon plc