RHA Design Features and Employer Options
RHA has been designed to offer employers the flexibility they need to integrate
RHA into their overall retiree benefits strategy. It offers employers an array of
options to tailor RHA to meet their needs.
Funding and Enrollment
Employers have the option to offer RHA on a subsidized or unsubsidized basis with
guaranteed access to comprehensive coverage for all eligible retirees regardless
of individual health status or employer subsidy level. Employers have full discretion
on how they want to fund RHA premiums for their retirees. RHA has no minimum enrollment
requirements.
Alternative Adoption Strategies
Employers have the option to offer RHA on the following basis:
- As a total replacement to existing retiree coverage options;
- On a side-by-side basis with current retiree coverage options; or
- To future retirees only.
Many large employers have very diverse lines of business with an array of retiree
benefit needs. RHA has been designed to allow employers to choose which of these
three options are most appropriate for each line of business that they elect to
offer RHA to.
Benefit Coverage Options
Employers may choose from an array of standard RHA benefit design options, including:
- Five standard pre-65 benefit plans, including two HSA compliant, high deductible
designs;
- Several Medicare Advantage Private-Fee-for-Service plan designs;
- Medicare Advantage HMOs;
- Three PDP drug coverage options; and
- Medicare Integration plans that operate like Medicare Supplement plans.
In addition, in certain circumstances employers have the option to offer customized
post-65 design options.
Eligibility
RHA has certain minimum eligibility standards. It can be offered to any retiree
and dependent as long as the employee has attained age 55 and 5 years of service
at retirement. Retirees have 90 days to enroll upon retirement. RHA allows retirees
to waive coverage and enroll in another group insurance plan at retirement. Retirees
that waive coverage can subsequently enroll in RHA at a later date as long as they
show proof of continuous coverage in another group insurance options.
Employers have flexibility to establish eligibility rules within these guidelines,
including:
- Deciding which retiree populations they want to offer RHA to; and
- What the employer specific age and service requirements are to qualify for RHA.
Retirees can enroll all eligible dependents at the time of retirement, but may not
add dependents after retirement.
Administration
RHA has also been designed to give employers flexibility related to administration
of the benefit. Employers have two options. They can take advantage of turnkey administrative
services available through Accenture, which has been retained to serve as the RHA
administrator for employers that elect to choose that option or use an alternative
administrative administrator of the employer’s choice. Employers that elect to use
Accenture as their RHA administrator receive comprehensive administrative services,
including:
- Enrollment materials;
- Call center support;
- Online and telephonic enrollment functions;
- Confirmation statements;
- Ongoing eligibility files to RHA carriers;
- Billing (employer and retiree); and
- Reconciliation.
If Accenture is used, then administrative costs may be included in RHA premiums.
Accenture costs are automatically included in RHA premiums unless the employer prefers
a different arrangement. Employers using an alternative administrator may include
those costs in their premiums up to a specified per member per month maximum.