The exchange aims to help minimize employers’ administrative burdens with managing retiree insurance issues and annual plan review and renewal, while offering retirees a more benefit options. It also integrates retiree medical insurance, including pharmacy, dental, vision and other benefit options, with wellness and other related services.
The solution features a Retiree Reimbursement Account, offered by Connextions’ parent company Optum, and a default plan option, which will provide coverage for retirees who do not actively select a plan. In addition, myCustomHealth has a call center staffed with representatives to serve customers during their enrollment process and answer questions throughout coverage periods.
According to Mercer’s National Survey of Employer-Sponsored Health Plans (see “Employers Hold Back Health Benefit Costs”), the prevalence of medical plans for Medicare-eligible retirees continues to decline. However, among large-size employers, roughly one-third still provide coverage to retirees 65 and older.
“Some large employers want to continue providing medical and other benefits to their Medicare-eligible retirees, but prefer to provide the retiree with a choice of benefit options and give them a subsidy to help pay for individual insurance coverage,” said Sharon Cunninghis, U.S. leader of Mercer’s health and benefits business. “Providing benefits through an exchange helps an employer ease the transition for their retirees and guides them through the insurance selection process. The Connextions exchange will empower retirees with more benefit choices and personal assistance in choosing their benefits, while allowing employers to better manage costs and future liabilities.”
For more information, visit www.mercer.com.