The report, based on an analysis of Hewitt Associates’ client database, presents new trend data on the prevalence of retiree health coverage sponsored by large employers and finds a continued erosion of retiree health benefits. The report also includes findings from a new survey assessing how large employers might change their retiree health programs in the future, and on their reaction to the Administration’s proposal to add a prescription drug benefit to Medicare.
The Hewitt survey finds that many large employers say they would seriously consider a variety of strategies to trim retiree health costs in the next three to five years. When asked how their organization would “most likely” respond to the Administration’s proposal to add a drug benefit to Medicare, most large employers said they would “most likely” retain drug coverage for retirees age 65 and over if the administration’s plan were enacted.