How to save $millions on your Retiree Health Plan

Most retiree health plans specify the benefit to be provided to retirees who meet an age and service requirement. This benefit is often some sort of continuation of the active plan and initially often seems relatively low cost in terms of the premium rate (for those eligible for Medicare) and on an overall cash basis when compared to what is spent for active employees. However, as medical inflation compounds over time, what was once a modest benefit eventually becomes an extraordinary financial burden.

The key to controlling this cost is to define the benefit in terms of the costs the company is willing to pay and not in terms of the benefit the company must provide - regardless of cost.

This is a simple idea to understand in theory and it has many potential applications to specific circumstances in practice. We have revised or implemented plans based on this idea for four different organization and saved them millions of dollars.

Will application of this idea work for your plan and save you $millions? The initial consultation is free. Contact us at (201) 400-1150 or