RHA Program Objectives
Guaranteed-issue Catastrophic Coverage
Employees considering retirement are primarily concerned with securing affordable
coverage that protects their assets against significant health care costs, regardless
of their health status. To meet this need, RHA has been designed to offer an array
of affordable coverage options that protect against catastrophic costs and provide
comprehensive coverage. Individuals who enroll at retirement are guaranteed access
to these coverage options regardless of their health status.
Fully Insured Solutions
To enhance their risk management and budgeting capabilities, employers have expressed
a clear preference to shift the insurance risk for retiree health care coverage
to other parties. RHA has been designed to feature carriers who have agreed to bear
this risk through fully insured arrangements.
Pre- and Post-65 Retirees
Employers are seeking a comprehensive retiree medical solution that addresses the
needs of both early (pre-65) and Medicare-eligible retirees. While there are viable
solutions for Medicare-eligible retirees, the reality is that finding comprehensive,
fully insured, guaranteed-issue coverage for early retirees is much more challenging.
In developing RHA enhancements, the primary focus has been on addressing the needs
of early retirees while offering a viable and competitive array of post-65 coverage
options.
No Employer Contribution Required
The prevailing practice in the health insurance market is for carriers to require
substantial employer subsidies or participation levels to qualify pre-65 retirees
for guaranteed-issue, comprehensive coverage. RHA has been developed to eliminate
all employer subsidy and minimum participation requirements for either pre- or post
65 retirees. Employers who have historically offered substantial subsidies for retiree
health care are now faced with unsustainable FAS 106 post-retirement medical obligations
while employers who have not subsidized retiree health care coverage do not want
to become enmeshed in those obligations. RHA provides a workable solution for both
groups of employers.
Comprehensive Administrative Support
Providing retiree health care benefits is not a core business activity for most
employers, and administering retiree health care is resource-intensive. RHA has
been developed to offer employers the option to take advantage of a comprehensive
administrative support infrastructure, thus minimizing the resources required to
offer and manage a retiree health care benefit package.