HOUSTON BUSINESS REVIEW

When it Comes to Group Health Insurance, Baby Boomers Beware
By Mike Alexander Sr.

Mike is involved with several organizations including the National Association of Health Underwriters, Independent Insurance Agents Association, East End Chamber of Commerce, Better Business Bureau and the National Association of Small Business Owners, to name a few. Mike is a licensed Risk Manager and highly regarded in the insurance industry.

For more information on ABM and Mike Alexander, visit their site here.

Most CFO's and HR people at Small to mid sized companies are concerned about the effect that the Baby Boomer population will have on Their companies Group Health Plan Costs. It is widely noted that a great majority of Baby boomers will continue to work past Medicare Age, thus putting an even greater strain on the budget for Health Care.  Some companies are considering eliminating Retiree health coverage, due to rising cost and the Huge Burden it has put on companies like Ford and General Motors. 
What does a company Do?  Most can't afford to provide the benefits, How can they assist the retiree or over age 65 people, without breaking the bank on healthcare costs ?

There are several options out there for these individuals:

1) Set up a Medicare Advantage program for all employees over 65. With the event of Medicare Part D, (the New Medicare Drug Benefit) Companies can offer employees a choice between an HMO, PPO, or PFFS plan.  Most of these plans have either no premium cost or minimum premiums and give the employee great benefits, similar to the program they had with the group health,
Employees must have both Medicare parts A & B.  There usually is no cost to set up one of these plans within the company and Employees will appreciate the benefit.  

2) Set up a Group Medi-Gap policy for all employees over age 65, these plans are portable and employees may keep the plan after they leave employment, all of these plans offer Drug benefits.  The Medi Gap plan will enable the employee to choose any doctor or hospital they want, and there is no under writing or health questions asked, the premiums for this coverage can be 60% to 80% less than Traditional Group plans, and benefits are usually better for the employee.  

3) Use the new Medicare Part D drug benefit to offset the prescription cost of your plan, most companies can save money on their FASBE contribution to retiree medical costs by using this subsidy.

4) Set up and hold quarterly or annual retiree meetings, to keep employees informed on their choices when they reach 65, a good education program will reap great morale and translate into cost savings on your group health plans.

5) Find a Medicare Specialist, most group agents know little about Medicare and might not be able to offer all the options a Medicare Specialist can show you, Medicare is a complex issue and requires a lot of external Knowledge about how the Medicare system works,

One great thing happened in 2003, the Medicare Modernization Act was passed and now Companies and their Senior Employees have many more options available to them, to find out more about all of the issues detailed in this article feel free to call me, Mike Alexander Sr, a Certified Medicare Specialist, at 281-448-3040 et 223. 

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