In a 2008 survey of 500 employers, the following changes have been adopted for 2007 or 2008 for benefit cost management for their retiree health programs: changing the employer subsidy (32%); tightening eligibility requirements (31%); offering Medicare Advantage HMO/PPO options (28%); changing the plan design (24%). Newer alternatives include: eliminating subsidies for future retirees (32% are doing now or planning for 2008); offering a high-deductible health plan (HDHP) with a health savings account (HSA) to actives and retirees under age 65 to help pay for current -- or future -- health care expenses on a tax-free basis (25% doing/planning); eliminating employer-managed drug coverage for post-65 retirees and relying on Part D plans (19% doing/planning); offering Medicare Advantage private fee-for-service plans (12% doing/planning). (p.16)

Towers Perrin. (2008). 2008 health care costs survey. Stamford, CT: Towers Perrin. Retrieved from http://www.towersperrin.com/tp/getwebcachedoc?webc=HRS/USA/2008/200801/hccs_2008.pdf

The Towers Perrin 2008 Health Care Cost Survey, conducted in September 2007, marks the 19th consecutive year that Towers Perrin has surveyed, analyzed and reported on major trends in employee and retiree health care costs. A total of 500 employers, with operations in numerous locations nationwide, responded. Respondents are primarily Fortune 1000 companies.

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