The company surveyed 122 employers between July and August for its 2022 Retiree Medical Survey, according to an Oct. 11 news release from Willis Towers Watson. The respondents employ 1.9 million workers.
Medical benefit costs for pre-Medicare retirees is projected to increase 4.8 percent in 2023, up from 3.6 percent this year, according to the release. Costs for Medicare-eligible retirees are projected to rise 2.7 percent in 2023, up from 2.1 percent this year.
Thirteen percent of those surveyed said they expect to make changes to their retiree medical benefits over the next three years, according to the release. About half said they expect to make a change because the benefits are too expensive for their companies to maintain, 36 percent said they are looking to address unacceptable financial risks and 33 percent cited the need to reduce the plan’s administrative burden.
Twenty-percent of employers said they have either stopped offering a traditional group medical plan to early retirees or are considering a replacement, according to the release. Of those who have terminated a group plan, 75 percent said they are replacing it with access to and financial support for individual insurance through a private marketplace.
