Two Counties Adopt Medicare Exchange to Keep Up Quality While Managing Costs

September 24, 2015

Cobb County in Georgia and the Alameda County Employees’ Retirement Association (ACERA) in California are public retirement systems that sought new ways to provide affordable, comprehensive health plans for their retirees in the face of high costs and growing concerns over the long-term liability of offering the benefit. Both turned to Towers Watson’s OneExchange for a Medicare solution.

OneExchange helped in several ways, including by offering a wide variety of plan options, providing one-on-one enrollment support to retirees, and delivering a suite of communication tools to educate retirees.

In fact, well-thought-out plans for communicating to retirees were a common theme in the success of both organizations. Communications are a key success factor for all employers transitioning retirees to a private Medicare exchange, regardless of whether they are public sector organizations or private companies.

Among the best practices for communications cited by the two counties include:

  • Educate staff. Medicare exchanges offer individual Medicare supplemental and Medicare Advantage plans, and most retirees are used to traditional group health plans. Staff must be equipped to help retirees understand the differences and what it means to them.
  • Prepare retirees. In addition to getting information on how the Medicare plans offered will change, retirees need specifics on how to enroll, where they can get help with decision-making and the timeline for the transition.
  • Allow plenty of time. Retirees might be geographically dispersed and some might not use email. Because most communication will go through regular mail, employers need to leave enough time in their transition plan to ensure that everyone is ready by the start of the enrollment period.
  • Leverage existing tools. Existing communications formats such as company newsletters or customized mailers have the added benefit of being familiar to retirees.

Although these suggestions are broadly applicable, it also is important to develop communication strategies that take into account the specific attributes of the region, industry, and organization.

To learn more about Cobb County and ACERA’s private Medicare exchange transitions, see the case study in Governing magazine.

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