Extend Choice^®

The high degree of variability in health insurance costs, year over year, is unmanageable and unsustainable. Extend Choice assists employers as they strive to provide and maintain early retiree benefits while concurrently managing the costs of these programs.

About this program

Extend Health is introducing a brand new concept in retiree health benefits designed specifically for employers, government offices, unions, or municipalities that are considering moving to defined contribution plan benefits.

Employers will direct early retirees or other designated populations to Extend Choice to find guaranteed issue Individual Major Medical plan options from multiple carriers. Plans will include different products with varying premiums, network types and benefit options. All plans will include the same general benefit categories but may vary in the reimbursable amounts, frequency of visits, deductible levels, co-insurance levels, co-pays or annual benefit amounts. Employees can choose the options which best fit their needs and budget.

Highlights of the program

Employers can use Extend Choice to offer employees a controlled and easy-to-understand transition from traditional defined benefit solutions to defined contribution health care accounts and individualized policies. Transitioning retirees can purchase an individual plan for equal or lesser value than what is available on the open market, with no individual underwriting required. By moving to a single benefits platform, administrative processes will be simplified and participation levels will be high.

Employers benefit by reducing corporate health liabilities and by ensuring fixed (rather than variable) health care costs. Introducing Extend Choice to the early retiree community offers a natural migration for other employee and retiree groups and signals a shift from traditional insurance plans coverage to defined contribution options.