Shift Costs to Medicare, Not Employees.

Business leaders feel squeezed between surging healthcare costs and addressing the healthcare needs of employees. But most employers underutilize a powerful tool that could provide overall healthcare budget relief. Instead of employers shifting costs to employees, they can shift costs to Medicare.

Consider:

1.?????? Medicare Eligibility and Funding - All Americans are eligible for Medicare when they turn 65. Employees and employers have been funding this for as long as the employee has been working via the Medicare payroll tax. When an employee stays on the group health plan after they turn 65, they are effectively paying for two coverages (Group and Medicare), but only using one.

?2.?????? Large & Growing Segment of the Workforce - 7% of the workforce is age 65+ in 2024 and this number is expected to grow to 9.5% by 2030 (Source: U.S. Bureau of Labor Statistics).

?3.?????? Higher Relative Impact on Healthcare Budget - while the average 65+ workforce population in 2030 will just below 10%, the weighted average cost impact of those 65+ will be over 20%. In other words, one-fifth of a given employers’ healthcare budget will have an alternative funding source – Medicare.

?4.?????? Medicare Can Be Better Coverage - 80% of those who had Medicare while working said their coverage was equal to or better than their employer’s (Source: Allsup Survey of 1,000 employees – 2022).

?5.?????? Medicare Misconception - 34% of employees aged 62 – 64 do not plan to join Medicare when they turn 65 because they incorrectly believe that Medicare is not an option while they are working (Source: Allsup Survey).

By developing a Corporate Medicare Plan that outlines how to best leverage Medicare for a given employer and that informs, educates and provides personalized support to those who are 65+, more of these employees will choose to move to Medicare and therefore provide a significant and immediate reduction in healthcare costs for the employer.