Survey Says: Employer-Sponsored Health Care Benefits for Retirees Will Drop by 2014

June 3, 2010

A recent survey by Towers Watson indicates the majority of employers expect to change and even diminish their sponsored health care options for retirees as a way to manage the increased costs associated with health care. Here are some of the results:
  • 88 percent of employers plan to pass on increases to employees.
  • 74 percent plan to reduce health benefits and programs.
  • 33 percent plan to absorb costs in their business.
  • 20 percent plan to pass on increases to customers.
To see the full article, click here.

2 Responses to “Survey Says: Employer-Sponsored Health Care Benefits for Retirees Will Drop by 2014”

  1. Shirley A. Sprinkle said

    I look upon the prospect of companies dropping retired people as a failure to keep what had been promised. It is particularly difficult for those widowed or widowers and for others with severe health issues.

  2. cholla45 said

    Dear Ms. Sprinkle,

    Change is almost always frightening and I hear you. If companies drop their retirees entirely that causes terrible trouble for many people, as you say.

    However, when companies provide a healthcare reimbursement arrangement (HRA) to cover the costs of individual insurance, the majority of retirees find that they can not only afford to pay for the insurance they need, they usually have more choice of plans so they can find one that fits their individual situations better, and their out of pocket expenses may even decrease.

    That’s what we strive for at Extend Health – to help employers continue to provide a healthcare benefit to their retirees, who have worked for many years and earned the benefits they receive.

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