Allsup white paper, “Managing Retiree Healthcare Costs,” outlines options, alternatives for employers
Belleville, Ill. – Aug. 5, 2010 – Allsup today released “Managing Retiree Healthcare Costs,” a white paper providing employers with information and alternatives for managing retiree healthcare costs more effectively. The publication, available at www.AllsupInc.com, includes guidance on choosing the best option specific to an organization’s needs. Allsup, a nationwide provider of Social Security disability representation and Medicare plan selection services, also works with employers to coordinate their group health, disability and workers’ compensation benefit plans with Social Security and Medicare.
“The weak economy, rising cost of healthcare coverage and an aging population are making it increasingly difficult for employers to manage retiree healthcare benefits,” said Eric Gudmestad, Allsup senior vice president of commercial business who works with companies to provide Allsup Medicare Advisor® to their soon-to-retire or retired employees. Allsup Medicare Advisor is a Medicare plan selection service that helps guide individuals through their Medicare options and transition from group health plan coverage to Medicare.
“Healthcare legislation passed earlier this year is adding to the confusion, leaving many employers even more uncertain of their options and concerned over the costs,” Gudmestad said. In fact, a recent study by Towers Watson global consulting firm found that 77 percent of employers believe healthcare reform will reduce the number of large employers that offer retiree health benefits. In addition, 43 percent of employers that offer retiree benefits plan to cut back or eliminate them.
Factors for Employers
A number of business-specific factors should govern the route a company takes to better manage its retiree benefits. Allsup’s analysis of circumstances for employers includes cost concerns, contractual agreements, company culture and administrative infrastructure. Governmental Accounting Standards Board/Federal Accounting Standards Board (GASB/FASB) reporting requirements also play a role.
“As more employees approach retirement and the demand increases for benefits-related resources, many more companies are going to have to make some hard, complicated choices,” said Gudmestad. “Adding to this, many don’t have the infrastructure within their human resources or benefits departments to support these needs. Increasingly, they will need to team with organizations that use expert knowledge and proficient guidance to help them clearly understand the options and execute their programs.”
For More Information
For questions about transitioning employees to Medicare, employers can call (888) 660-2779 or go to ama.allsupinc.com.
ABOUT ALLSUP
As a benefits coordinator between private and public plans, Allsup has helped hundreds of self-insured Fortune 500 employers, state and municipal governments, disability and workers’ compensation plans in reconciling and complying with Social Security and Medicare entitlements. For more information, visit www.AllsupInc.com.
Allsup is a nationwide provider of Social Security disability, Medicare and Medicare Secondary Payer compliance services for individuals, employers and insurance carriers. Founded in 1984, Allsup employs nearly 700 professionals who deliver specialized services supporting people with disabilities and seniors so they may lead lives that are as financially secure and as healthy as possible. The company is based in Belleville, Ill., near St. Louis.
The information provided is not intended as a substitute for legal or other professional services. Legal or other expert assistance should be sought before making any decision that may affect your situation.