Study of Retiree Health VEBAs

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.