Did you know that more ? Overthan 10 million seniors have retiree health coverage from their former employer or union? That’s roughly 25% of all Medicare-eligible seniors!
Ford Motor Company, Chrysler and other large companies are either dropping health coverage for retirees altogether and providing a monthly stipend or switching from a self-insured group plan to a fully insured group Medicare Advantage plan. Further, regulations for accounting standards, Financial Accounting Standards Board (FASB) or Governmental Accounting Standards Board (GASB) require accounting and disclosure of post-retirement liability for commercial businesses and municipalities. This accounting requirement hurts the balance sheet and encourages employers to seek more affordable options, like group Medicare Advantage.
Okay, you don’t know the top brass at Ford or Chrysler or any of the Fortune 500 companies for that matter. So what other groups might consider changes in retiree health coverage? Try municipalities, unions and larger employers in your community. You can also find out who advises them on their health plan and work with that consultant who is usually paid on a fee basis. Since consultants have not had to be experts in Medicare, here’s your chance to make a splash in the group market or partner with a consultant who hasn’t a clue how Original Medicare works. You should be confident because when large employers have dropped their retiree health plans, Medicare Advantage was the retirees’ plan of choice.
Group Medicare Advantage carriers are targeting groups as small as two retirees. Most plans are seeking retiree lives (including spouses) of 100 or more. A group census, that includes each retiree and spouse, is needed to obtain a group quote. Standard shelf plans are generally used for retiree lives below 500 and custom plans are developed for groups above 500 lives. Plans can be with or without prescription drug coverage.
Here is how a group Medicare Advantage plan works:
To get certified to sell Medicare Advantage or contracted with one of our carriers call the SMS Medicare Solutions department at 1-877-645-0147.