The group retiree health market is drastically changing. In recent years, impacts from the Affordable Care Act, rising insurance costs, and aging membership levels have resulted in increased financial liabilities that place the future of providing these benefits in doubt.
Post-retirement benefits serve as the cornerstone to help maintain generational solidarity across the membership of multiemployer and public sector benefit plans. However, the pressure to reduce financial liability has forced many plan sponsors to reexamine how they provide health benefits to retired participants. Many plan sponsors are seeking solutions that reduce financial liability, but how do you do this while still maintaining member satisfaction and the one-on-one touch retirees have grown to know?
Labor First is the leader in structuring seamless administrative solutions for group retiree health plans. We understand that the challenges most group health plans face are unique to each population. That is why our propriety administrative technology platform is built to adapt to your group’s retirement benefit needs. From the initial product selection and implementation to the billing/collections, compliance and ongoing administrative support, our team of licensed and highly trained professionals work to serve as an extension of your staff.
Medicare health benefit administration and advocacy is all that we do. Our team employs a dedicated, face-to-face support strategy that is aimed at creating an atmosphere where members are confident they are receiving the best the market has to offer.
Traditionally, many multiemployer and public sector health plans managed their post-65 retiree population by offering them the same group medical plans provided to active workers. While this approach has served many plan sponsors and retired members well in the past, the associated liability and administrative complexity can place a significant burden on fund administrators and their professional staff.
The Retiree Drug Subsidy (RDS) has been the preferred approach for plan sponsors since the beginning of Medicare Part D. The Retiree Drug Subsidy allows funds to receive federal subsidies that help prescription drug plans provide retirees with the same benefits they had while working. However, recent regulatory changes created a new program for providing retirees with prescription drug coverage: The Employer Group Waiver Plan (EGWP).
Since Medicare Advantage (MA) plans were first launched in 2003, many plan sponsors have been unsure if they are the right choice to cover retiree healthcare needs. Medicare Advantage plans are a type of health benefit offered by private insurance companies that contract directly with Medicare to provide Part A (hospital) and Part B (medical) benefits. Some Medicare Advantage plans offer optional Part D (prescription drug) coverage, referred to as “MAPD.”