The Medicare Planning Fringe Benefit® Provides A CMS Compliant Process for Transitioning Eligible Plan Members To Medicare. This Process Significantly Reduces Employee Benefit Costs.
An Actuary determined that the average annual employer cost is $15,754 per Eligible Plan Member (EPM) in 2021 based on a review of the Kaiser 2020 Employer Health Benefits Survey. An Actuary then determined that the Actuarial Lifetime Savings for each EPM transitioned to Medicare is $76,500 based on data from the U.S. Census Bureau and the Social Security Administration.
The table below shows the total costs and savings based on the percentage of EPMs that switch to Medicare.
After transitioning 100 Eligible Plan Members, the employer’s net Actuarial Lifetime Savings is $7,550,000
The Medicare Planning Fringe Benefit® Decision-Making Process
