Articles | February 18, 2021
While many organizations have moved away from offering retiree medical benefits to avoid the future financial obligations of such programs, some employers still offer them as a key component of their employee value proposition.
This is particularly important as we see Americans living longer and potentially lacking means to afford necessary healthcare in their later years.
By continuing to offer retiree medical benefits, organizations can reap important benefits:
While the advantages of a well-designed retiree medical program are clear for most participants, employers need to balance this benefit with the costs and risks of the coverage. Best practices suggest that employers ask themselves the following questions:
You can optimize your retiree medical offering by looking at the 3 Rs of cost containment:
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.
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