Extend Retiree^®

Over the last two years Extend Health has transitioned tens of thousands of retirees from traditional group based Medicare Supplement policies to individualized Medicare Advantage and Medigap plans through a defined contribution HRA vehicle. By enrolling in the Extend Retiree program, employers such as Ford, Chrysler, and Kellogg’s estimate tens of millions of dollars in annual savings and hundreds of millions in future FAS liability.

About this program

Employers set up a tax-free HRA allowance for each retiree and their dependent(s). The amount is determined annually and the use can be determined by the employer (within IRS guidelines). Funds may be used for reimbursement of Medicare Part B premiums, Individual Medicare plans, and healthcare–related out-of-pocket (213d qualifying) expenses. Unused funds can be carried over for future use or revert back to the employer.

Retirees purchase individual Medicare plans, like Medicare Advantage, Medigap and Medicare Part D through Extend Health; however, the HRA can be administered by Extend Health or another TPA.

Highlights of the program

Extend Retiree is a turnkey solution that requires only minimal employer involvement and responsibility. The program has limited set up fees and reduces the administrative overhead costs associated with enrolling retirees during open enrollment. Employers can use Extend Health's communications and training materials to inform retirees of program terms and the transition of current coverage.

Retirees gain access to a state-of-the-art Medicare marketplace including choice from the nation's leading health insurers. This platform, created by Extend Health and used by tens of thousands of retirees, is unique and hassle-free, representing competitive products and allowing for retiree choice across the spectrum of available Medicare plans. The plans have been vetted for value, quality, and customer service.

Extend Retiree helps companies, large and small, transition to defined contribution solutions, limit open-ended retiree obligations and reduce health care expenses and other costs associated with the management of retirees. Extend Health is the trusted resource enabling informed and confident decision-making through both online tools and expert advice from experienced Benefit Advisors.