For Immediate Release: July 22, 2014
Private Exchanges Evolving to Meet Need for Personalized Retirement Plans
SelectQuote Senior President Tom Grant offers insight on the flexibility private exchanges create
With the Affordable Care Act, insurance exchanges are becoming common practice and there is no exception when it comes to retiree health care coverage. There is no one-size-fits-all plan to fit evolving retiree needs. However, those employers looking for a flexible solution to satisfy the needs of a diverse retiree population are turning to private insurance exchanges. A recent Private Exchange Evaluation Collaborative study found that 37 percent of employers have implemented insurance exchanges or plan to do so before 2018 for their pre-65 retirees, as well as 32 percent for their post-65 retirees.
Private exchanges partner with employers to offer flexibility in transitioning current retirees and enrolling new retirees for the first time. Exchanges lift a weight from an organization’s HR team by managing communication and plan administration. To accommodate the varying needs, exchanges offer multiple carriers with broad plan offerings so retirees can customize plans to fit their lifestyle needs and price range – something traditional group plans cannot offer.
“As the marketplace shifts from defined benefit plans to defined contribution plans, retirees want to shop from a variety of options to ensure they receive the best plan for their money,” said SelectQuote Senior President Tom Grant. “By partnering with an exchange, companies are able to provide flexibility in plan offerings to their employees and help stretch their dollars at no additional cost to the organization.”
Another point of evolution in retirement plan administration is the availability of customized support outside of the Medicare Annual Enrollment Period. While October 15-December 7 is the time of year when all retirees can make adjustments to their existing Medicare plans, it’s not the only time that retirees have questions about their coverage. Every day 10,000 people turn 65 and choose their Medicare plan for the first time. When retirees are spending 12 percent or more of their household income on health care plans, they want support to ensure they’re making the best, most cost-efficient decision for themselves and their families.
“At SelectQuote, we offer year-round support from licensed Medicare agents,” said Grant. “Retirement is complex and navigating the world of Medicare can be overwhelming to anyone. We take a weight off an HR teams’ shoulders, but also give our customers peace of mind through our dedicated support staff.”
About SelectQuote Benefit Solutions: SelectQuote was founded in 1985 and has been an innovative and established leader in building and operating insurance exchanges for auto & home, term life and Medicare insurance products. Through its insurance exchanges, SelectQuote offers voluntary benefit programs that provide substantial cost savings to corporations, public sector employers, unions, associations and their employees, members or retirees. SelectQuote has consistently delivered business solutions to companies and organizations. For more information visit SelectQuote Benefit Solutions online or connectvia LinkedIn, Facebook or Twitter.