A new Kaiser Family Foundation report examines the current role and future outlook of employer-sponsored retiree health benefits for pre-65 and Medicare-eligible retirees.

Retiree Health Benefits At the Crossroads reviews recent trends and developments in employer-sponsored retiree health coverage and examines the impact of recent legislation, such as the Medicare drug benefit and the Affordable Care Act, on retiree health coverage.

The report describes leading strategies employers have been pursuing to limit costs associated with retiree health benefits, for example, by shifting toward defined contribution, rather than defined benefit plans, and reviews strategies that employers are considering, including the possibility of using new federal/state marketplaces as pathways to non-group coverage for their pre-65 retirees.  In addition, the report considers the potential implications of proposals that have recently received a fair amount of attention in the context of efforts to reduce federal spending that could directly or indirectly affect retiree health coverage and costs, such as proposals to raise the age of Medicare eligibility.