In our latest Madaket Minute, we discuss the growing trend affecting retirees with health benefits from former employers.
Recent reports show a significant increase in states offering only Medicare Advantage plans to Medicare-eligible retirees—up 50% since 2016. Many large employers still provide retiree health benefits, but most are now restricted to Medicare Advantage plans.
However, these plans often come with higher premiums, limited provider networks, and prior authorization requirements that can delay treatment. This trend limits retirees’ options, forcing many to choose Medicare Advantage to maintain their health benefits.
As Medicare evolves, it’s crucial for retirees to stay informed and understand their options. Don’t miss out on important updates—thanks for tuning into the Madaket Minute!
Read the video transcript below and subscribe to Madaket Health on YouTube.
Video Transcript:
Hello and welcome back to another Madaket Minute! Today, we’re diving into an important shift in Medicare options available to retirees, especially those covered by retiree health benefits from their former employers.
Typically, individuals over 65 have the choice between traditional Medicare and Medicare Advantage plans. However, a startling trend is emerging where retirees with health benefits from their past employers are being restricted to only Medicare Advantage plans.
According to a recent KFF report, 12 states now exclusively offer Medicare Advantage to their Medicare-eligible retirees, marking a 50% increase since 2016. What’s more, while only a fraction of large employers continue to offer health benefits to retirees, a majority dictate that these benefits be through Medicare Advantage plans only.
However, some of these plans come with higher premiums, and the limited networks can restrict access to preferred healthcare providers and hospitals. Prior authorization requirements that might delay treatment.
Ideally, Medicare should offer freedom to choose, but some retirees are forced to forgo their traditional Medicare eligibility and face losing retiree health benefits if they reject Medicare Advantage.
Stay tuned for more updates and thanks for tuning into the Madaket Minute.
