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Title : Employers In Conclusion Figuring Out They Tin Halt Shift Retiree Costs To Medicare

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Employers In Conclusion Figuring Out They Tin Halt Shift Retiree Costs To Medicare

Employers are finally showing signs that they own got figured out they tin own got wages of the generous Medicare payments to Medicare Advantage plans.

With Medicare Advantage plans paid 13% more than for the same beneficiary nether traditional Medicare, many seniors own got figured out the benefits are improve inward the soul plans. Private Fee-For-Service (PFFS) plans fifty-fifty give-up the ghost to a greater extent than than that.

What is notable is how long it seems to live taking employers to figure it out.

Hewitt has said that a traditional Medicare Supplement policy could damage an employer $1,000 to $1,500 per retiree. But a PFFS conception costs to a greater extent than similar $300 to $500 a year--and oft amongst improve benefits!

Now nosotros are hearing that Kodak, IBM, too Xerox own got decided to non operate out this coin on the tabular array whatever longer. Even state retirement plans are getting into the act, including Michigan too Kentucky. Michigan is no surprise because 1 the of the iii biggest national PFFS operators is Michigan Blue Cross.

Undoubtedly, many employers didn't boundary into the Medicare Advantage game out of fears these extra payments couldn't last. They are probable right. But the earliest nosotros volition run across Congressional cuts to the programme is inward 2009--and probable to striking PFFS first. The balance of the Medicare Advantage products volition non endure to a greater extent than than a gradual equalization amongst the traditional Medicare programme over a few years.

I wouldn't brand whatever longterm bets on PFFS, only the core Medicare Advantage programme volition probable live unopen to for a longtime to come.

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