Products November 29, 2012

Mercer Launches Medicare Retirement Exchange

November 29, 2012 (PLANSPONSOR.com) – Mercer and Connextions Inc. launched myCustomHealth, a national Medicare retirement exchange.
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The exchange aims to help minimize employers’ administrative burdens with managing retiree insurance issues and annual plan review and renewal, while offering retirees a more benefit options. It also integrates retiree medical insurance, including pharmacy, dental, vision and other benefit options, with wellness and other related services.

The solution features a Retiree Reimbursement Account, offered by Connextions’ parent company Optum, and a default plan option, which will provide coverage for retirees who do not actively select a plan. In addition, myCustomHealth has a call center staffed with representatives to serve customers during their enrollment process and answer questions throughout coverage periods.

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According to Mercer’s National Survey of Employer-Sponsored Health Plans (see “Employers Hold Back Health Benefit Costs”), the prevalence of medical plans for Medicare-eligible retirees continues to decline. However, among large-size employers, roughly one-third still provide coverage to retirees 65 and older.

“Some large employers want to continue providing medical and other benefits to their Medicare-eligible retirees, but prefer to provide the retiree with a choice of benefit options and give them a subsidy to help pay for individual insurance coverage,” said Sharon Cunninghis, U.S. leader of Mercer’s health and benefits business. “Providing benefits through an exchange helps an employer ease the transition for their retirees and guides them through the insurance selection process. The Connextions exchange will empower retirees with more benefit choices and personal assistance in choosing their benefits, while allowing employers to better manage costs and future liabilities.”

For more information, visit www.mercer.com.

Benefits November 29, 2012

Council Urges Legislative Action to Save DBs

November 29, 2012 (PLANSPONSOR.com) – The American Benefits Council has unveiled a six-point plan to address the ongoing, accelerated decline in defined benefit pension plans.
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The six points are: 

  • Funding stabilization must be made permanent. 
  • Pension accounting standards must be stabilized. 
  • Pension Benefit Guaranty Corporation (PBGC) insurance premiums need to be based on stable long-term assessments of need. 
  • Businesses should not be prevented by the PBGC from engaging in necessary and positive business transactions. 
  • Congress, the U.S. Treasury Department and the IRS must avoid developing nondiscrimination rules that encourage pension plan closures. 
  • Workable rules for hybrid pension plans are critical. 

 

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The Council is urging lawmakers to consider these proposals as they fashion a plan to address the federal deficit, economic growth and tax and entitlement reform.  

“These proposals would raise tens of billions of dollars of revenue and help to create jobs by preventing unnecessary diversion of company assets and stimulating business expansion,” Council President James Klein said.  

The plan is here.

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