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Oct 15, 2008 |
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Cost Control The NSC Retiree Health Program achieves cost savings in several ways. A Retiree Strategy The dramatic impact a defined contribution strategy has on your FAS 106 obligation is no secret. However, without multiple coherent affordable options for your retirees, a defined contribution strategy may result in substantial turmoil. In addition, the complexity, confusion and exorbitant cost of managing multiple plans may erode the advantage of moving to a defined contribution strategy. We work with you to build a coherent benefit offering for your retiree population to simplify your move to a defined contribution strategy now or in the future. Unlike most product approaches to FAS 106 management, our approach evolves with your company. A defined contribution strategy can reduce the FAS 106 liability by as much as 50% without substantially altering benefits. Medicare Risk HMO's For every member in a Medicare Risk HMO, the cost of retiree benefits to your company is virtually, if not entirely, eliminated. The success of Medicare HMO's today is based greatly on your company willingness to establish a defined contribution strategy that encourages retirees to consider managed care. Even if you are unwilling today to adopt an aggressive strategy-implementing tomorrow's solution now will create a structure that will evolve with the medical delivery system. Medical Trend Your company can save almost 1% to 3% a year in health care inflation because costs for traditional Medicare supplement plans have held steady at 7% to 8% instead of the more than 10% inflation experienced with many of today's retiree health care plans. A one percent trend reduction can reduce your FAS 106 liability by as much as 20%. Medicare Coordination Method A Medicare supplement benefit design can result in substantial cost reductions when compared to more typical coordination of benefits methods such as exclusionary, COB or carve-out plans. Plan Design We can help you with Plan design issues. We recently developed a plan for an employer with over 2,000 retirees and dependents. Our plan design actually improved benefits for over 60% of the retirees, yet cut medical costs by nearly 50% by eliminating many "dollar trading". PPO Access Our NSC networks reduce medical premiums by 7% and 21% respectively. We negotiate on behalf of employers in other areas and we are currently working with nationwide PPO's to provide move comprehensive options. Administrative Cost Reductions Providing health care benefits to your retirees is complicated by the fact that retirees travel frequently, often relocate and seasonally, and may even move out ot the area at retirement. As a result, companies are faced with the expensive and time-consuming challenge of attempting to coordinate medical coverage for retirees across multiple states. But by moving your company's Fee-For-Service retirees to a Medicare supplement benefit structure, you'll be able to greatly simplify the administration of your retiree benefit program and improve service through our outstanding service systems. 
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