Traditionally, many plan sponsors have managed their post-65 retiree population by offering the same group medical plans provided to their active workers. While this approach has historically worked well, the associated liability and administrative complexity can place a significant burden on benefit administrators and their professional staff. Properly implementing a Medicare Medical Supplement plan can relieve not only the administrative burden, but reduce long term financial liabilities as well.
Medicare Medical Supplement plans help pay some or all of the health care costs that Original Medicare does not cover, including copayments, coinsurance, and deductibles. Through our integrated platform and utilizing our group purchasing power, we deliver best in class Medicare Medical Supplement plans and pricing not available in the individual market.
Our solution is fully integrated into every aspect of selecting, implementing and managing the most efficient medical benefits available in the retiree market. Please read below a listing of some of the benefit highlights and continue scrolling for a case example of the financial savings impact when moving to a Medicare Medical Supplement plan with Labor First.
• National Network (Plans accepted wherever Medicare assignment is accepted)
• Standard Medicare Supplement plans available
• Customized Supplement plan designs available
• Composite group or age banded pricing that is guaranteed issue regardless of age, health condition or geography
• Can be paired with a Medicare Part D EGWP Rx plan or offered stand alone
We converted this client from a self-funded ASO medical plan structure to a fully-insured group medical supplement plan. We emulated the in-force plan design while adding small benefit enhancements such as foreign travel coverage, improving the overall benefit for retirees.
|Medical Plan Design||Copay|
|In-Force Cost Analysis|
|In-Force Retiree Annual Cost||$4,602,000|
|Per Member Per Month Cost||$295 PMPM|
|Labor First Proposed Cost|
|Labor First Annual Cost||$3,073,200|
|Per Member Per Month Cost||$197 PMPM|
|Total Monthly Savings||$127,400|
|Total Annual Savings||$1,528,800|
A client since 2015, annual benefit renewals are averaging less than three percent increases.