Providing health insurance to your employees is no longer the comprehensive solution it was in previous generations. Because of the skyrocketing cost of healthcare premiums, new technologies and prescription drug prices, many organizations have been forced to increase out of pocket costs to employees, increase employees' share of premiums or both. In addition, insurance companies have rolled out more HMO type plans with limited networks, gatekeeper requirements and no out of network coverage. This means that employees who have serious illnesses may or may not be able to seek treatment at centers of excellence for their condition across the country.

The costs of insurance and treatments don’t consider the issue of lost wages for the employee and potentially their family members.

For those employees who have been lucky enough to reach retirement age, they are facing new issues around the cost of Medicare and out of pocket healthcare costs including supplemental premiums. These retirees are finding that these costs are significantly higher than they had planned on, especially when you account for the difference in taxation of healthcare benefits while working versus in retirement. Those who have saved well are finding that their Medicare premiums are means tested, and they can end up paying as much as 3 times more than their neighbor might be paying for the same Medicare coverage. As they age, they are also faced with the prospect of significant out of pocket costs for extended healthcare coverage. This includes home healthcare or assisted living and nursing home costs, most of which are not covered under Medicare.

All of these issues have created the need to take a more strategic approach toward funding for healthcare costs while working and in retirement. Much like a custom piece of clothing, it requires measurements that take into account where you are today, but it also requires you to forecast where you will be tomorrow. One size does not fit all, and the time is now to customize the approach you and your employees take around funding for healthcare costs while working and in retirement. Let us help.