Aon Hewitt Analysis Highlights Strong Economic Advantages of Retiree Health Exchanges

 Aon Hewitt Analysis Highlights Strong Economic Advantages of Retiree Health
                                  Exchanges

Individual Exchange Models Offer Wider Selection of Plans and Provide
Significant Savings to Employers and Retirees

PR Newswire

LINCOLNSHIRE, Ill., March 26, 2013

LINCOLNSHIRE, Ill., March 26, 2013 /PRNewswire/ -- At a time when the number
of employers planning to re-evaluate their long-term retiree health strategies
is at an all-time high, a new analysis by Aon Hewitt, the global human
resources solutions business of Aon plc (NYSE: AON), underscores the value and
significant savings opportunities that retiree health exchanges can offer both
plan sponsors and retirees.

(Logo: http://photos.prnewswire.com/prnh/20100719/AQ37264LOGO)

A new Aon Hewitt survey of 550 companies covering almost 4 million retirees
shows more than 60 percent of employers are reassessing their long-term
retiree health strategy in response to rising health care costs and mandated
changes from the Patient Protection and Affordable Care Act (PPACA).
Approximately 20 percent of employers currently offer guided access to the
individual Medicare retiree plan market through an individual health exchange
and another two-thirds are considering this strategy for the future. According
to Aon Hewitt, employers can potentially reduce their gross retiree medical
spend by 20 to 50 percent per year by transitioning retirees to this type of
model.

"The economics of providing traditional employer-sponsored retiree health
coverage are changing, and employers are seeking the most cost-effective and
tax-efficient delivery models," said John Grosso, a senior vice president in
Aon Hewitt's Health & Benefits practice. "Retiree exchanges provide access to
these individual market efficiencies, along with a wider choice of health
plans than exists in the traditional employer-provided retiree health plan.
Very often, retirees can purchase individual Medicare Advantage, Medigap or
Medicare Part D plans at lower rates than the employer can offer for
comparable coverage due to the federal subsidies, Medicare Part D program
enhancements and market-based competition found in the individual market."

In addition to having access to a wider range of options, Aon Hewitt estimates
that retirees can save an average of $1,000 each year when purchasing their
health benefits through individual retiree exchange. For example, Aon Hewitt
Navigators, a comprehensive retiree health care exchange that has serviced
more than 250,000 retirees since 2010, offers access to more than 80 insurance
carriers and 3,300 different plans, plus personalized support to ensure
participants choose the best plan to meet their individual needs. To help
retirees navigate among the hundreds of plan choices and combinations
available in the individual marketplace, Aon Hewitt Navigators offers seasoned
benefits advisors who not only help retirees choose a plan during open
enrollment, but can assist them if they have questions or concerns throughout
the year. Of the retirees Aon Hewitt Navigators served in 2012, 92 percent
indicated they were satisfied with their overall experience.

"In our experience, retirees appreciate having more options and more money in
their wallets," said Matt Mann, general manager of Aon Hewitt Navigators. "At
the same time, employers are looking to balance retiree needs with cost and
other business pressures. Retiree health exchanges enable employers to
successfully do both, which is why they are becoming an attractive delivery
vehicle for plan sponsors to consider now and going forward."

About Aon Hewitt

Aon Hewitt is the global leader in human resource solutions. The company
partners with organizations to solve their most complex benefits, talent and
related financial challenges, and improve business performance. Aon Hewitt
designs, implements, communicates and administers a wide range of human
capital, retirement, investment management, health care, compensation and
talent management strategies. With more than 29,000 professionals in 90
countries, Aon Hewitt makes the world a better place to work for clients and
their employees. For more information on Aon Hewitt, please visit
www.aonhewitt.com.

About Aon

Aon plc (NYSE: AON) is the leading global provider of risk management,
insurance and reinsurance brokerage, and human resources solutions and
outsourcing services. Through its more than 65,000 colleagues worldwide, Aon
unites to empower results for clients in over 120 countries via innovative and
effective risk and people solutions and through industry-leading global
resources and technical expertise. Aon has been named repeatedly as the
world's best broker, best insurance intermediary, reinsurance intermediary,
captives manager and best employee benefits consulting firm by multiple
industry sources. Visit www.aon.com for more information on Aon and
www.aon.com/manchesterunited to learn about Aon's global partnership and shirt
sponsorship with Manchester United.

Media Contacts:
Maurissa Kanter, 847-442-0952, maurissa.kanter@aonhewitt.com
MacKenzie Lucas, 847-442-2995, mackenzie.lucas@aonhewitt.com

SOURCE Aon plc

Website: http://www.aon.com
 
Press spacebar to pause and continue. Press esc to stop.