Large firms' retiree health benefits before medicare reform: 2003 Survey results

Health Affairs

Volumn 23, Issue SUPPL., 2004, Pages

  McArdle, Frank B ^a   Neuman, Patricia ^b   Kitchman, Michelle ^b   Kirland, Kerry ^c   Yamamoto, Dale ^d  

^a Hewitt Associates   (United States)

^b HENRY J KAISER FAMILY FOUNDATION   (United States)

^c Hewitt Associates   (United States)

^d NONE

Author keywords

[No Author keywords available]

Indexed keywords

CORRELATION ANALYSIS; DATA ANALYSIS; EMPLOYEE; EMPLOYER; GOVERNMENT; HEALTH CARE COST; HEALTH CARE MANAGEMENT; HEALTH CARE PLANNING; HEALTH CARE POLICY; HEALTH CARE SYSTEM; HEALTH MAINTENANCE ORGANIZATION; HEALTH SURVEY; HUMAN; LAW; MEDICARE; ORGANIZATION; PENSIONER; PRESCRIPTION; PUBLIC HEALTH; REVIEW; STATISTICAL ANALYSIS; STATISTICAL SIGNIFICANCE; TECHNIQUE; ARTICLE; COST; ECONOMICS; FEE; HEALTH INSURANCE; INFORMATION PROCESSING; INSURANCE; ORGANIZATION AND MANAGEMENT; RETIREMENT; UNITED STATES;

COST SHARING; DATA COLLECTION; FEES AND CHARGES; HEALTH BENEFIT PLANS, EMPLOYEE; INSURANCE COVERAGE; MEDICARE; RETIREMENT; UNITED STATES;

EID: 4644333599     PISSN: 02782715     EISSN: None     Source Type: Journal    
DOI: 10.1377/hlthaff.W4.7     Document Type: Review

References (14)

1. Henry J. Kaiser Family Foundation and Health Research and Educational Trust, Employer Health Benefits: 2003 Annual Survey (Washington: Kaiser Family Foundation, 2003).
2. Congressional Budget Office, "H.R. 1: Medicare Prescription Drug and Modernization Act of 2003 and S. 1: Prescription Drug and Medicare Improvement Act of 2003," CBO cost estimate (Washington: CBO, 22 July 2003).
3. L. McCormack et al., "Trends in Retiree Health Benefits," Health Affairs (Nov/Dec 2002): 169-176.
4. F. McArdle et al., Retiree Benefits Now and in the Future, Findings from the Kaiser/Hewitt 2003 Survey on Retiree Health Benefits (Washington: Kaiser Family Foundation, 2004).
5. The new law encourages continued coverage of retiree health benefits by offering employers considerable financial incentives, flexibility, and multiple options for coordinating their plans with Medicare, including tax-free direct subsidies equal to 28 percent of total drug costs between $250 and $5,000 per retiree if the employer plan provides drug coverage that is at least actuarially equivalent to the standard Medicare drug benefit.
6. Kaiser/HRET, Employer Health Benefits: 2003 Annual Survey.
7. For information about health benefits offered to retirees of state governments, see J. Hoadley, How States Are Responding to the Challenge of Financing Health Care for Retirees, September 2003, dev.kff.org/medicare/ medicare6104report.cfm (15 December 2003).
8. About half of the companies that participated in the 2002 survey also participated in the 2003 survey.
9. Hewitt actuaries identified typical ratios of family members to employees (2.5) and family members to retirees (1.65).
10. Estimates of nonfederal retirees with employer-sponsored coverage from the CBO, letter to Rep. William M. Thomas, 14 November 2003.
11. The total cost of providing retiree health benefits to retirees younger than age sixty-five, retirees age sixty-five and older, and dependents was calculated using the average total cost by size of firm for the 373 surveyed employers that responded to the total cost question and then applying the average cost per size of firm to the 35 employers that did not respond to the question. This resulted in a total cost of $2.14 billion for the nonresponding firms, which was added to the $15.97 billion for the responding firms.
12. Hewitt Associates, "Health Care Costs Continue Double-Digit Pace, but May Start Moderating in 2004," Press Release, 13 October 2003, based on data from the Hewitt Health Value Initiative, was4.hewitt.com/hewitt/resource/ newsroom/pressrel/2003/10-13-03_hc.htm (15 December 2003).
13. Direct subsidy projections are from the CBO, letter to Sen. Don Nickles, 20 November 2003, and the projections of tax benefits are from the Joint Committee on Taxation, "Estimated Revenue Effects of Certain Provisions Contained in the Conference Agreement for H.R. 1," 21 November 2003.
14. Congress remains very interested in this subject and has charged the U.S. General Accounting Office with conducting two new studies to examine trends in employment-based retiree health coverage and the options and incentives available under the legislation that may affect the provision of coverage.