State and local governments’ first obligation is to fund pensions. Health care programs come next — and they’ve become much more expensive. Can plan sponsors keep retiree health care sustainable?
Systems across the country currently offer several types of retiree health care coverage — from Medicare Advantage Plans to Medicare Supplement Plans, to blending retired and active employees into one plan — and it can be difficult to make sense of which option is the most effective for you as a plan sponsor and for your retirees.
In addition, there are many different levers that can be pulled to save money, whether it be decreasing the amount a person is eligible to receive or requiring a certain length of service for coverage. And while these levers will often result in cost savings for the plan sponsor, they can leave retirees with an additional cost burden. However, when cost-saving strategies are paired with the individual Medicare marketplace, plan sponsors can save money without putting the cost burden on the backs of retirees.
In this episode, John and Marianne discuss common challenges and goals for public sector plan sponsors in preserving retiree health care. Tune in to hear how public sector plan sponsors can keep their commitment of providing retiree health care while lowering costs for themselves and their retirees.
Listen to the full episode below. You can also subscribe on Apple Podcasts or bookmark the "Eye on 65" page. More information for public sector plan sponsors can be found on the Willis Towers Watson website.