Gone are the days when Americans retired at 65 and went straight on Medicare. According to Pew Research:
- 19% of adults 65 and over are employed today, versus 11% in 1987
- Workers 75 and older are the fastest-growing age group in the workforce today
- Adults 65 and over are projected to be 8.6% of the workforce in 2032, accounting for 57% of labor force growth between now and then.
How does Medicare factor into employer-sponsored benefits packages?
- Medicare is often the best coverage option for older employees/retirees but can include significant out-of-pocket expenses.
- Employers can offer assistance with certain Medicare premiums and uncovered expenses.
- Medicare recipients can supplement their coverage with specialty employer-sponsored benefit solutions.
What solutions can they offer?
- Employer-Sponsored Medicare Advantage Employer Group Waiver Plans (EGWPs) – These plans, which require specific government approval, can provide Medicare Advantage and prescription coverage under Medicare Parts C and D (A/K/A Parts A, B, and D)
- Individual Coverage HRAs (ICHRAs) – These accounts can be used to reimburse active or retired employees for healthcare premium costs and/or qualified medical expenses for Medicare Parts B and D, Medicare Advantage (Part C), Medigap/Medicare Supplement, and private health insurance coverage.
- Qualified Small Employer HRAs (QSEHRAs) – These accounts are similar to ICHRAs but have an annual reimbursement cap and apply only to employers with 50 or fewer full-time employees.
Benefits of DataPath Medicare Options
- Specialty Medicare solutions can be set up easily in Summit without the need for involvement by DataPath technical support.
- Plans can include account-linked debit cards with customized card behaviors and MCC restrictions when appropriate.
- A single, unified platform allows easy plan administration alongside the employer’s other CDH and COBRA plans.
For 40 years, DataPath has been a pivotal force in the employee benefits, financial services, and insurance industries. The company’s flagship DataPath Summit platform offers an integrated solution for managing CDH, HSA, Well-Being, Commuter/Transit, COBRA, and Billing. Through its partnership with Accelergent Growth Solutions, DataPath also offers expert BPO services, automation, outsourced customer service call center, and award-winning marketing services.