About Medicare advantage for Employers.
It isn’t a shocker that many people are looking beyond the traditional years of retirement. Some are working way into and after 65 years of age. Although, it might be an unusual course of action gaining momentum. This age group sheds significant experience in the business market. However, it has its due challenges for both employer and the employee.
Due to years of experience with the employer’s choice of health insurance, seniors don’t tend to switch to Medicare. Although not only is Medicare age-appropriate for them, it has a broader expanse to cater to all types of people. Yet, they still choose a employer health plan and, as a result, increase the group cost for the employer.
Employers and Medicare Advantage
Recently, on March 2nd, 2022, former New York Mayor Bill de Blasio bid farewell to his honorable position with a heartfelt parting gift for the pandemic-ravaged city. With a new health insurance plan in place for a whopping 250,000 city retirees, he believes this gift would keep on giving is partly funded by the federal government.
Even though initially, de Blasio had promised better healthcare benefits and no change of supplements to healthcare providers – this parting gesture is believed to save the city almost $600 million annually. With Medicare Advantage programs being used as an excellent alternative to existing retiree health plans, the government is all in for it.
The past decade has been proof of this steady yet guaranteed inclement. There was an increasing number of employers using a government-funded Medicare Advantage program. It is proving to be a cost-saving alternative to their traditional health plans. Meanwhile, insurance carriers and employers find a way in-between to create a private Medicare Advantage plan.
However, like every plan with pros and cons, there is only a seemingly drawback of this efficient alternate. While it would save money for employers to take funding from the government, there is still a chance that retirees’ health coverage might get disturbed in continuity if a change of plan doesn’t include their doctors, hospital, or has entirely new requirements.
Other than that, the collaboration of employer-sponsored plans and federal-funded plans is a match made in heaven for retirees. They can receive automatic exemptions to policies available via individual beneficiaries. Also beneficiaries can prolong deadlines, receive exclusive information and follow provider networks, among other things.
What Can Employers Do?
You may analyze that if Medicare Advantage is that big and incredibly efficient for employers, then why more employers don’t pursue it. The answer lies in the fact that many employers don’t actively educate themselves and their employees about Medicare. Here are a few factors that can primarily help cater to this matter at hand:
– Introspect About Medicare
One of the first and most important things an employer can do is introspect when it comes to Medicare. After all, some do not know where they stand with Medicare plans. How can you think to proceed and convince your employees to take on the healthcare plan?
Moreover, sooner or later, you will find yourself at the same crossroads. The choice then would be whether to switch to Medicare Advantage or continue with your employer’s healthcare plan. So now is the best time to make up your mind and study the matter from a personalized perspective.
– Educate Their Employees
Naturally, the next step is to educate your employees. It is crucial to make this distinction that enrolling in Medicare near the age of 65 is a requirement for some employees – for a majority. It has become a decision maker’s choice.
Hence, it takes a big leap on the part of the employer if they do a good job at educating and convincing their employees that Medicare is indeed a better choice for them. Whether Medicare Part A and B or Medicare Advantage, the idea is to sell the plan that is Medicare.
– Develop a Strategy
Lastly, pursuing your employees with a change of plans is always a challenging position to be in. Therefore, switching from an existing healthcare plan to Medicare also means you need to have a strategy. Being a responsible employee counts as the part that you will have to play in order to carry on the venture successfully.
Moreover, you can also outsource the job and have a third party like United Insurance undertake this and create a strategy for you. An experienced insurance carrier as such can easily handle answer all the questions of the employees and answer in detail with enrollment instructions and which plan to choose.
In Conclusion,
It turns out Medicare is the most reliable, secure, and cost-effective method for both employers and employees who have postponed their retirement to work over the age of 65. While some development is happening in the right direction, employers will have to work actively to push Medicare in the right direction for employees to take notice.
Are you looking for consulting with a reliable expert in the Medicare insurance market? United Insurance is one of the frontrunners in all things Medicare. We strive to educate wisely and provide an excellent customer experience. Our guiding principle is to serve the senior market at the highest level.
Our team pushes to exceed your expectations each and every day.
To get started on your Medicare journey, give us a call today!