Archived Insight | November 3, 2008

Study of Retiree Health VEBAs

Recent agreements between several automobile manufacturers and the UAW to establish and manage Voluntary Employees’ Beneficiary Associations (VEBAs) to fund retiree health care have focused attention on VEBAs.

In response, Segal conducted a study of 25 stand-alone retiree health VEBAs, which represent a significant share of all stand-alone retiree health VEBAs at the time the study was conducted in late 2007.

Retiree Health VEBAs Study Download Now

Key findings

The following are among the key findings of the study:

  • Historically, bankruptcy has been the most common reason for the formation of retiree health VEBAs, although collective bargaining is becoming a more prominent trigger.
  • Although many retiree health VEBAs are new, some have been in existence for decades.
  • Retiree health VEBAs are not only for very large retiree populations.
  • The number of participants covered by a retiree health VEBA may grow by design.
  • Retiree health VEBA funding is not limited to upfront company contributions. Many VEBAs in the study have ongoing funding streams.
  • VEBAs are not limited to traditional retiree major medical/hospitalization and prescription drug coverage. Many VEBAs in the study offer other types of benefits in addition to or instead of that coverage, including Part B premium reimbursement, life insurance or health reimbursement accounts.

See more insights

Crowd Of People On The White House Grounds

How the One Big Beautiful Bill Act Will Impact Health Plans

Segal's July 30 webinar explores how the Big Beautiful Bill Act and recent SCOTUS rulings may reshape health plans and compliance strategies.
Female Doctor Pushing Senior Woman On Wheelchair

ACA Dollar Amounts and Percentages

We added the 2026 employer shared responsibility penalty, the 2026 affordability percentage and the FPL safe harbor for plan years beginning 1/1/26.
Nurse Monitoring A Premature Newborn In An Incubator While Wearing A Facemask

Medical Stop-Loss Premiums Increase Nearly 10%

Segal’s infographic based on the latest medical stop-loss coverage data shows how health plan sponsors are protecting against rising medical costs.

This page is for informational purposes only and does not constitute legal, tax or investment advice. You are encouraged to discuss the issues raised here with your legal, tax and other advisors before determining how the issues apply to your specific situations.