Half of employers (50%) are concerned about increases in their costs to provide medical benefits for retirees
Costs for Pre-Medicare retirees are projected to increase 4.8% next year, up from 3.6% this year.
Costs for Medicare-eligible retirees are projected to rise 2.7% next year, up from 2.1% this year.
Employees and retirees value retiree healthcare, but employers are needing to balance benefit cost pressures
Of employers that expect to make changes to their retiree medical benefits in the next three years49%
say benefits are too expensive for the company to maintain36%
are looking to address unacceptable financial risks33%
need to reduce the plan’s administrative burden
1 in 5 have ceased offering or are considering replacing a group plan to pre-Medicare eligible retirees
Among those employers that terminated a group plan, 75% are replacing it with access to and financial support for individual insurance through a private marketplace.
Those considering a replacement are looking toward a private marketplace.
|Retiree Medical Survey Results, IM-RMS-infographic
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