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Quick Facts

Industry: Municipality

Amount of Employees: (Unknown)

Type of Insurance: Retiree Healthcare

Valued Client Since: (Unknown)

Problem

Facing rising healthcare costs, a large municipality was under financial pressure due to retiree healthcare commitments.  Unfunded liability was impacting the client's bond rating, and new GASB regulations were on the horizon.  The client was in need of a defined benefit funding strategy.

Solution

The municipality chose to implement the Retiree Benefit Choice Medicare Exchange, moving to a defined contribution model.  Three group plans were made available to retirees, and HRA's were funded for retirees that chose to access the individual marketplace.  AssuredPartners worked with the health plan broker call center to assist retirees in finding the best plan for their individual needs.

Results

The first year savings for this municipality totaled $20 million, and OPEB liability was reduced by $300 million, thus relieving the financial pressure the client was facing.