Finally get that promotion? Get exclusive content, tips and tools to help you excel.
Implicit bias occurs when individuals make judgments about people based on gender, race or other prohibited factors without even realizing they’re doing it.
Is your employee handbook keeping up with the changing world of work? With SHRM's Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Build competencies, establish credibility and advance your career—while earning PDCs—at SHRM Seminars in 12 cities across the U.S. this spring.
#SHRM18 will expand your perspective – on your organization, on your career, and on the way you approach HR. Join us in Chicago June 17-20, 2018
Exchanges are being used to provide 'defined contribution' nongroup coverage
Members may download one copy of our sample forms and templates for your personal use within your organization. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organization’s culture, industry, and practices. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRM’s permission. To request permission for specific items, click on the “reuse permissions” button on the page where you find the item.
The share of employers sponsoring retiree health coverage has declined and employers that continue to offer coverage are redesigning their plans in response to rising health care costs and the Affordable Care Act, according to a new report by the nonprofit Kaiser Family Foundation,
Retiree Health Benefits at the Crossroads.
The share of large firms (200 or more workers) in the U.S. offering retiree health benefits to active workers has declined from 66 percent in 1988 to 28 percent in 2013. The largest firms are most likely to offer health benefits to active workers when they retire; 48 percent of organizations with 5,000 or more workers provide retiree coverage versus 5 percent among those with from 3 to 199 workers.
Premiums and Cost Sharing
Typically retirees are required to make a contribution toward the total premium, and in some instances retirees pay 100 percent of the cost. According to Mercer’s National Survey of Employer-Sponsored Health Plans, as cited in the Kaiser report:
Ongoing concerns about costs coupled with changes in Medicare, notably the addition of prescription drug coverage and more recent changes made by the Affordable Care Act (ACA), have triggered a major reassessment by employers of whether, and in what form, they should continue to offer retiree health benefits. Further, a number of policy proposals are under consideration that could have a significant impact on retiree health benefits and costs.
In general, most employers do not appear to be dropping coverage altogether, but the prevalence of retiree health coverage is expected to decline incrementally over time, assuming employers follow through on their interest in dropping coverage.
In addition to outright terminations of coverage, key changes reported by employers include:
Over the next few decades, these trends suggest that employer-sponsored supplemental coverage is likely to be available to far fewer workers, be structured differently and play a smaller role in retirement security than it has in the past.
Stephen Miller, CEBS, is an online editor/manager for SHRM.Related External Report:
Market trends in retiree healthcare and financial reporting implications, PricewaterhouseCoopers, April 2014
Related SHRM Articles:
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Please sign in as a SHRM member before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
Become a SHRM Member
SHRM’s HR Vendor Directory contains over 10,000 companies