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Text Size DownAbout Group Retiree Plans
A viable solution has emerged to minimize and control the costs of Group Retiree plans while continuing to provide employees with high quality, integrated health benefits and wellness programs. Welborn Health Plans (WHP) brings a unique combination of resources, experience and hands-on service to help companies resolve their healthcare objectives. Since 1986, WHP has successfully managed Employer sponsored Group Retiree plans. |
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Advantages of Group Retiree Plans
There are many practical benefits of removing retirees from the Group Plan into a Retiree Plan. Retirees are statistically the highest users of medical and drug benefits. Keeping them in the Group Plan will increase the premium and cost of the entire program. Moving them to a Retiree plan that is subsidized by the government will reduce the cost of this group and reduce the cost of the remaining actives.
Moving the retirees to a Retiree Plan transitions the risk and cost out of the Employer plan to a government subsidized plan, thereby reducing the cost to the Employer. The impact is two-fold. The Group plan premium is reduced and the specific cost of the retirees is offset by the subsidies.
The Federal Government (through GASB and FASB) requires proof of funding for the retiree plans. This is done by tracking the funding as a liability balance sheet item and annual reporting. These Retiree plans can remove much of the funding requirement from the Employer to Welborn.
Benefits to the Group
