Interesting concept:
Keeping Covered
Has anyone on the board actually taken advantage of this "trend" yet?
Keeping Covered
Why the sudden interest? With boomers approaching retirement, insurers sense opportunity: At 65, early retirees become eligible to buy lucrative policies that supplement or replace Medicare. "We want to cover them for the rest of their lives," says Kenneth Sperling, senior vice-president at Cigna's Senior & Retiree Services.
An initiative introduced by insurer Aetna (AET) and a group of major companies on Jan. 1 is expanding early retirees' access to coverage. Under the plan, called Retiree Health Access, several employers are banding together to help their retirees, pre- and post-65, buy insurance at discounted group rates.
By offering these benefits, companies earn goodwill with employees while also creating an incentive for older workers—who may be burned out or more expensive than potential replacements—to leave the payroll. According to Mercer, those with company-provided coverage retire, on average, at age 61; those without benefits tend to hang on until age 63.
Has anyone on the board actually taken advantage of this "trend" yet?