Retiree Health Care Design and Strategy in a Post-Reform Environment: Continued Growth of Exchange-Based Strategies
Impending developments in the legal and political environment are prompting companies to alter their retiree health care strategies. Employers are reevaluating their strategies and are favoring private exchanges as they allow employers to take advantage of health care efficiencies leading to better financial outcomes for their companies and retirees.
According to the 2016 Retiree Health Care Survey, eighty-four percent of plan sponsors already leveraging an individual market strategy for post-65 retirees are utilizing a multi-carrier private exchange partnership.
If plan sponsors have not done so already, the time is now to review current retiree health care strategies and consider alternatives for the future that better support cost and risk management objectives, while continuing to support key retiree benefit commitments.