Fidelity® and Extend Health Partner to Help Retiring Employees Transition to
Private Health Coverage
Strategic agreement provides comprehensive guidance to employees transitioning
from employer-sponsored medical coverage to individual insurance
BOSTON -- February 5, 2013
Fidelity Investments^® and Extend Health, a Towers Watson company, today
announced a strategic agreement to enhance Fidelity’s retirement guidance
capabilities to include retiree health care. This agreement will simplify the
transition process for millions of retiring Americans as they shift from
employer-sponsored medical coverage to the individual Medicare market for
Under the agreement, Fidelity and Extend Health, the nation’s leading private
Medicare exchange, will provide retiring participants who are coming off
company-sponsored health plan coverage access to resources and support to get
quality coverage at a price they can afford. Together the two companies will
also assist plan sponsors transitioning from employer-sponsored retiree
medical insurance as they communicate changes and help retirees select a
private insurance option that best suits retirees’ unique needs. Fidelity will
begin offering the service to its plan sponsor clients during the third
quarter, in time for this year’s benefits enrollment season, which typically
begins in the fall.
“With health care being one of the most underestimated costs in retirement and
Medicare not covering all medical expenses, an increasing number of employers
are asking for help in transitioning their employees into retirement,” said
Christi Rager Wise, senior vice president, Fidelity Investments. “Our
agreement with Extend Health will expand the financial guidance Fidelity
provides employees transitioning into retirement while also helping them
tackle one of the biggest risks to financial security in retirement, the cost
of health care.”
Every day, more than 7,500 Americans turn 65, ^ the age when many workers opt
to retire^1. With fewer employers providing retiree medical insurance and an
average couple expected to need $240,000 for medical expenses during
retirement^2, many people are looking to supplement Medicare with additional
private insurance. The agreement between Fidelity and Extend Health will help
retiring workers bridge this gap when they are seeking more coverage than
Medicare, but face the daunting task of choosing from the myriad of options on
the private market.
“Preparing for retirement can be one of the most overwhelming times in a
person’s life,” said Bryce Williams, Towers Watson’s Managing Director of
Exchange Solutions. “Fidelity already guides millions of Americans toward a
more financially secure future. With Extend Health, the combined expertise
will ease the process further by providing clear choices in their health
Access to the Extend Health exchange enhances Fidelity’s Plan for Life
workplace guidance experience by incorporating retiree health care into
retirement planning conversations. Participants can now receive help selecting
private insurance from more than 80 national and regional health insurance
providers with thousands of plans to meet their specific needs. The choices
provided to the participant are based on several factors including their
desired level of coverage and medical needs, financial situation, and
availability due to geographic considerations.
In addition to referring retiring employees to private health care options
through Extend Health, Fidelity is also expanding its capabilities to offer
plan sponsors retiree medical account (RMA) support, including recordkeeping
and reimbursement services, retiree workshops and meetings, and strategic
About Towers Watson and Extend Health
Towers Watson is a leading global professional services company that helps
organizations improve performance through effective people, risk and financial
management. With 14,000 associates around the world, we offer solutions in the
areas of benefits, talent management, rewards, exchanges, and risk and capital
management. Founded in 2004, Extend Health, a Towers Watson company, operates
the largest private Medicare exchange in the country. For more information,
visit towerswatson.com or extendhealth.com.
About Fidelity Investments
Fidelity Investments is one of the world’s largest providers of financial
services, with assets under administration of $3.9 trillion, including managed
assets of $1.7 trillion, as of December 31, 2012. Founded in 1946, the firm is
a leading provider of investment management, retirement planning, portfolio
guidance, brokerage, benefits outsourcing and many other financial products
and services to more than 20 million individuals and institutions, as well as
through 5,000 financial intermediary firms. For more information about
Fidelity Investments, visit www.fidelity.com.
Extend Health and Towers Watson are not affiliated with Fidelity Investments.
Guidance provided by Fidelity is educational in nature, is not individualized
and is not intended to serve as the primary or sole basis for your investment
or tax-planning decisions.
Fidelity Brokerage Services LLC, Member NYSE, SIPC
900 Salem Street, Smithfield, RI 02917
Fidelity Investments Institutional Services Company, Inc.
500 Salem St., Smithfield, RI 02917
© 2013 FMR LLC. All rights reserved.
^1 www.census.gov defines Baby Boomers are those Americans born between 1946
^2 Fidelity business data, “Retiree Health Care Cost Estimate,” May 2012.
Chuck Kabat, 617-563-3365
Fidelity Corporate Communications, 617-563-5800
Follow us on Twitter @FidelityNews
Melanie Meharchand, 650-292-8717
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