Employers - How to handle Seniors on Group Health Insurance?

All across the country right now employers are looking for ways to lower health insurance premiums. There are a lot of different coverage issues that many different employers are facing - depending upon their industry. Fast food restaurants are trying to figure out how to keep down their full time employees while giving them enough hours to stay happy. Other employers are trying to figure out how to handle their 65+ seniors on group health insurance.

This article will strictly focus on how to lower health insurance premiums by lowering the average age of the group. It will also show you how to provide better coverage for those 65 and older on your current plan.

Seniors on Group Health Insurance (65+ and Retirees)

In case you don't know, those who are 65 or older are eligible for Medicare. This is the federal health insurance program that covers roughly 80% of your healthcare expenses. Upon turning 65 you receive Medicare Part A and can elect to receive Medicare Part B for a premium.

However, some individuals are still working and there are other considerations for those individuals. In example seniors on group health insurance need to know:

  • Employers with less than 20 employees: Medicare is the primary insurance
  • Employers with more than 20 employees: Medicare is the secondary insurance
  • You may not want to enroll in Part B if Medicare is secondary coverage and you have good group health insurance. It will save you from having to pay a premium.
  • Seniors can enroll in Medicare Part B anytime their group health insurance is ending (Voluntary or Involuntary - COBRA and Retiree Insurance does not count as group health insurance)
The Million Dollar Question
What options do employers have to help their seniors on group health insurance while not kicking them off the plan?  
Employers can implement a group retiree health insurance plan! A group retiree health insurance plan is not just for those individuals who have retired from the group. Below is a list of the seniors that can enroll in these group retiree health insurance plans:
  • Retirees of the group
  • Spouses of active employees (Plus or Minus 20 employees)
  • Active Employees (Under 20 Employees)

Benefits can be substantially better while saving the employer large amounts in their premiums. The other day we were working with a group that was able to offer a "Modified Plan F" to their retirees and employees that were over the age of 65 and lower his premiums at the same time. A Modified Plan F is basically 100% coverage minus small co-pays for doctors visits. If you would like to see a similar plan you can visit Benefits Association Retiree Package to see how their benefits are structured.

This is a great way for employers to save on their group health insurance and help their older employees at the same time. For more information on how to offer Retiree Health Insurance call 1-877-936-2991.

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