Retiree Transition To Private Exchange Strategy Expected To Soar

Expedited by proposed CMS Group Medicare Advantage payment structure

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Apr 19, 2016, 06:00 ET

MILWAUKEE, April 19, 2016 /PRNewswire/ -- Health Exchange Resources (HER) predicts a major strategy shift in employers currently offering group Medicare Advantage Retiree medical plans. Based upon 2017 Centers for Medicare & Medicaid Services (CMS) proposed base reimbursement competitive bid structure, an employer offering retiree group Medicare Advantage coverage may see an estimated 10-20% increase in costs. For many employers this could mean an additional $50-$100 million in retiree health care costs.

Employers maintaining a group Medicare Advantage health plans will have tough decisions to make for 2017 about the cost affordability of maintaining offerings to retirees. Medicare Retiree Exchanges will provide viable options.

HER has been working successfully with employers over the last several years to review and transition the traditional group Medicare Retiree plans to Retiree Medicare Exchange strategies. For industries such as Oil & Gas, where revenues supported employer sponsored retiree group plans, "the unsustainable cost has refocused the retiree health care cost discussion in these sectors, as well as with most employers," according to, David Osterndorf, HER's Chief Actuary and Partner. "While this seems like a minor adjustment, the impact on employers sponsoring group Medicare Advantage plans can be significant. It's critical to understand the real numbers to avoid and overcome any adverse impact."

Health Exchange Resources (HER) a women-owned business, is an independent specialty consulting practice founded with a single purpose-to assist employers strategically source private health exchange providers for retiree and active employees.

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SOURCE Health Exchange Resources (HER)