The evolving healthcare insurance marketplace has expanded the ways employers can provide value for retirees while controlling or exiting their legal obligations and future liability.
Retiree medical benefits can be an expensive and time-consuming obligation for employers. To control costs and lower administrative burden, many employers have chosen to move their Medicare-eligible retirees into the individual insurance market, while continuing to sponsor their coverage with a Health Reimbursement Arrangement. And, as a result of federal legislation, pre-Medicare retirees may now have lower-cost coverage options in the public marketplace.
Until recently, most employers viewed exiting retiree medical using methods that require some employer sponsorship of ongoing health care costs as the only option – but Willis Towers Watson’s Longitude Solution® offers a dynamic new option.
Exiting Retiree Medical with the Longitude Solution
Willis Towers Watson’s proprietary Longitude Solution is a retiree medical exit solution that leverages a customized group annuity. The Longitude Annuity is issued by a highly rated insurance company to transfer the obligation to pay retiree health benefits from the employer to the insurer.