The number of firms offering retiree health benefits through Medicare Advantage has risen 26 percentage points since 2017, according to KFF's 2023 Employer Health Benefits Survey.
In 2023, 21 percent of companies with more than 200 workers offered health benefits to retired employers, down from 28 percent in 2013 and 66 percent in 1988.
Among companies that do offer retirement benefits, more are doing so through Medicare Advantage. In 2023, 52 percent of employers offering retirement benefits did so through MA, up slightly from 50 percent in 2022. The number is higher among firms with 5,000 or more employees, at 62 percent.
Among firms not currently using MA for retirement benefits, 15 percent said they are likely to switch to an MA plan in the next two years. This number was higher among firms with 5,000 or more employees, at 29 percent.
KFF interviewed human resource and benefit managers at 2,133 firms for the employer health benefits survey. The study was published Oct. 18.
Read the full survey here.