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, issued by a highly rated insurance company, to transfer the obligation to pay retiree health benefits from the employer to the insurer.
Longitude Retiree Medical Exit Strategy Infographic — Download PDF
Retirees gain guaranteed, nontaxable funding for medical benefits for the rest of their lives from a highly rated insurance company. Employers gain the ability to fully exit their financial and obligation for retiree medical benefits.