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Retiree Health Coverage: Recent Trends and Employer Perspectives on Future Benefits


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.