In the fall of 2019, we discussed how to carve out your retiree population and the strategy behind it. Baby Boomers are aging into retirement at a rate of more than 10,000 per day! That’s a lot of retirees. As people are living longer, a school district’s retiree group is only going to continue to increase, which means the costs associated with providing health insurance benefits will also increase. It is, therefore, important for school districts to assess the cost of premiums and project how much money will be needed to fund for employee and future retiree health benefits while also providing them with quality health benefits. With inflation, those increasing costs can take a big bite out of a school district’s budget.
Maybe it’s time to think about other health benefit options. Change is never an easy process, especially when it involves healthcare and retirees who depend on having a quality health plan. Below is updated information from Corporate Synergies on how their health insurance product can be a great alternative health insurance supplemental plan for your retirees while also lowering your costs.
Corporate Synergies has partnered with AmWINS Group Benefits to provide a brand-new Medicare Concierge service that is available to all your retirees who are Medicare eligible. This benefit provides retirees with access to a valuable resource, providing choice and expertise to help them secure proper medical and prescription drug insurance when they retire. This program will be offered with zero financial commitment, no administrative hassles or liability exposure for your school district.
This program, called Retiree Benefit Choice, will give your future retirees access to exceptional retiree healthcare options when they become Medicare eligible.
Highlights of the program for Employers:
- Stronger Benefits and Lower Rates than NYSHIP for Post-65 Retirees
- No cost to employer – Plan can be offered on a voluntary basis
- No administrative burden – all eligibility management, enrollment, communications, marketing, customer service, billing & collection are all included
- No financial liability
- Retirees can be billed directly reducing the administrative burden on the district
- District can reimburse for Medicare Part B premiums and still save money
Highlights of the program for Future Retirees:
- Provides access to Medicare Benefit Specialists to help retirees understand Medicare and their healthcare options once they reach age 65
- Offers group plan options that are not available in the individual Medicare marketplace
- No need to switch doctors as long as they accept Medicare
- 97% of all providers in the U.S. accept Medicare
- NYSHIP plans utilize a network and members can incur higher out-of-pocket costs if using a provider out-of-network
- Stronger Benefits and Lower Rates than NYSHIP for Post-65 Retirees
- For example, the empire plan through NYSHIP includes an out-of-pocket maximum of $7,900 per individual. The new program offers three Medicare Supplement plans that include out-of-pocket Maximums of either $2,000, $1,000 or $203. This will significantly lower the amount of financial exposure that each retiree faces.
- Available in other states like Florida
- Rates vary among states and can be lower than staying with NYSHIP
- Experienced Benefit Specialists will assist retirees in finding the plan that best fits their personal needs
- Can still pay for the benefits premium through the pension administration
- Group plans include a comprehensive Retiree Assistance Program called Manage My Health
- 24/7 Telemedicine with $0 copay
- 24/7 Counseling and Intervention resources
- Chef prepared Food Delivery that meet dietary restrictions
- Health & Wellness programs and much more
Financial Analysis – Comparison To NYSHIP:
The numbers tell the story. Below are the average savings per Medicare-eligible retiree and are based on a mid-tier plan. There are multiple plans a retiree can choose from to best fit his/her needs and all the while your district may see even greater savings.
With NYSHIP, districts are restricted on how payments are made through retirees’ pensions. That is NYSHIP only allows for payment from a retiree’s pension in increments of 5%, which means districts are left to bill the retiree if the contribution requirement is between the rates provided by NYSHIP. In addition, NYSHIP’s increments are based on a calculation that doesn’t always align with each district’s bargaining unit agreements (i.e., NYSHIP’s contribution increments for retirees on a family plan can only calculate the contribution correctly if the district’s bargaining unit contracts are set up to read that retirees on a family plan are to pay the cost of a single plan retiree plus a percentage of the difference of family plan-retiree less the single plan-retiree cost) and therefore do not afford some districts the opportunity for cashless billing. However, with AmWINS/Corporate Synergies this nuisance would become obsolete. AmWINS/Corporate Synergies could handle billing the retirees and in some cases, can work with the State pension company to set up the payment of the premium through the retiree’s pension. Think of the time savings and efficiencies created within your benefits department by having the billing handled by AmWINS/Corporate Synergies. These services are generally all included in the package.
Also, keep in mind, there is no minimum membership requirement, which means that you don’t have to have more than a certain number of retirees sign-up for the benefits.
Let’s look at the savings on a grander scale:
If you have 200 retirees on single coverage, your savings = $34,176
If you have 200 retirees on family coverage, your savings = $133,844
Total savings = $168,020
Remember, each year your retirement pool is going to increase, which means the more retirees in the categories above, the more the savings.
The process to enroll in this program is simple and their team will be there to help you along the way. This is a valuable benefit that can be utilized immediately for your Medicare eligible retirees while also providing savings to the district. This is a home-run for the school district community!
Bryan McManaway
Benefits Consultant
This article was also featured in our newsletter Lesson Plan Vol. 25