Article Abstract:
Employer-sponsored health care for retirees covers an increasing number of individuals, at escalating costs (about $4.6 billion in 1985). Legal, medical and ethical issues complicate cost containment efforts. Retirees under 65 depend most on company coverage, but Medicare-eligibles over 65 also require contributions as co-payments, deductibles and other excluded items. The elderly are subject to chronic ailments, requiring long-term attention. To provide cost-effective support of this type of care, companies can include chronic care in benefit provisions, sponsor special insurance policies or use the case management approach, which entails a commitment to monitoring. To protect themselves from poverty in old age, those now working may need to fund their coverage through prepayments.
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Article Abstract:
The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) is an attempt by the federal government to reduce the federal deficit by shifing the burden of retiree medical care from the government to the private sector. Income tax deductions for health insurance will be disallowed for companies that do not comply with COBRA. Companies are advised to see which is cheaper: complying with COBRA, or dropping company-paid insurance plans. In the former case, employers might pay retired workers' medical bills indefinitely. In the latter case, the employer could shift the burden to employees, employee organizations, or insurance companies. This would not necessarily reduce employee benefits, but it would change the carrier.
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Article Abstract:
A study of a senior wellness program, the Senior Healthtrac Program. has determined that wellness programs for retirees can substantially reduce their use of medical services and reduce the costs of service provision. The study reveals that reduction in the health risk factors of the seniors in the program resulted in a savings of about $133 per person a year in medical costs; that the number of reported hospital day for the seniors in the program fell 27%; and that visits to the doctor dropped seven percent for the participants.
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