Effective Cost Reduction Practices Regarding Pre-65 Retirees
Many 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.
SSDC specializes in finding and developing savings opportunities in the most efficient, cost-effective and beneficiary sensitive fashion.
Optimal coordination of Medicare and retiree health care can lead to a 10-15 % decrease in overall ongoing health costs for employers, and at the same time benefits the retiree. Here are some interesting facts:
- 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 health care covered population.
Provisions in federal law allow group health plans to take a secondary position to Medicare under certain conditions. When an individual is converted to Medicare primary payer status, an employer will save an average of $9,000 in future annual medical plan costs. Retroactive savings can also be achieved through recovering medical payments that were made incorrectly under the employer’s medical plan. SSDC specializes in finding and developing these savings opportunities in the most efficient, cost-effective and beneficiary sensitive fashion.
Partner with SSDC’s Comprehensive Medicare Identification and Management services, and achieve the following:
- Reduce your retiree health liability by 10 to 15%
- Provide additional value to your retirees and their dependents
- It is possible to do both without any changes to your existing plan and SSDC can provide insight into how that can happen