Retirees Across U.S. Losing Employer Coverage

Five national surveys collected by the Kaiser Foundation show that employer coverage supplementing Medicare coverage for retirees has dropped significantly over the last 10 years.

Supplemental coverage is an important component of retirement security because it protects retirees from the significant deductibles and copays charged by traditional Medicare. Unlike private insurance plans, traditional Medicare has no annual limit on out-of-pocket expenses paid by sick patients.

The article lists strategies employers are using to reduce coverage and limit costs for retiree health plans. We have seen all of these tactics at CWA employers, including:

• Increasing premiums and cost-sharing requirements paid by retirees and  their spouses

• Putting caps on employer funding by shifting from a defined benefit to a defined contribution approach (such as a contribution cap or HRA contribution)

• Moving to fully-insured Medicare Advantage plans

• Moving retirees to plans offered on a private exchange

Links:

Fading Fast: Fewer Seniors Have Retiree Health Insurance (Kaiser Family Foundation, May 05, 2016)

Medicare 2016 costs at a glance (Medicare.gov)