Amid concern over rising costs, U.S. employers eyeing alternative approaches to retiree healthcare benefits
Employers targeting private insurance marketplaces to replace traditional group plans for early retirees, WTW survey finds
ARLINGTON, Va., Oct. 11, 2022 (GLOBE NEWSWIRE) -- Pressured by rising costs, U.S. employers are looking at alternative ways to provide healthcare benefits to their retirees over the next three years. And some employers plan to replace their traditional group retiree medical benefits for pre-Medicare retirees with individual insurance through private marketplaces. These are among the findings in a new survey by leading global advisory, broking and solutions company WTW (NASDAQ: WTW).
The WTW Retiree Medical Survey found half of employers (
“With meaningful cost increases coming, employers aren’t sitting still. For now, they remain committed to offering retiree healthcare benefits and a positive retiree experience. But they’re looking for ways to provide them more cost effectively,” said Lindsay Hunter, senior director, Health & Benefits, WTW. “Employers are rightfully concerned about this growing burden and are studying all options, including private marketplaces.”
According to the survey, one in eight respondents (
The survey also revealed that over one in five employers (
“The recent passage of the Inflation Reduction Act is making private insurance marketplaces for individual coverage an even more attractive option for retiree benefits. In particular, the extension of premium tax credits and the improvements to Part D plans position private marketplaces to better offset rising healthcare costs for both organizations and their retirees,” said Trevis Parson, chief actuary, Via Benefits, WTW.
About the survey
A total of 122 U.S. employers participated in the 2022 Retiree Medical Survey, which was conducted in July and August 2022. Respondents employ 1.9 million workers.
About WTW
At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.
Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Learn more at wtwco.com.