Selecting a Pre-65 and Post-65 Retiree Health Exchange

A natural gas service provider sponsored a retiree health plan that had become costly, required a significant amount of internal resources to administer, and was not meeting the needs of the retirees who participated in the plan.

The plan sponsor was interested in adopting a health exchange approach for both their pre-65 and post-65 retiree populations.

SBA delivered the following scope of services:

• Provided client information about the retiree exchange industry, prospective vendors, emerging trends and other relevant details to provide a solid foundation for the search
• Provided guidance on the significant differences between the Pre-65 and Post-65 exchanges
• Assisted with the identification of data that prospective vendors would require
• Qualified prospective vendors prior to the release of the RFP
• Worked with our client’s resources to define the service set
• Created an RFP and executed a full search process
• Analyzed and scored each vendor response and presented to client
• Facilitated client scoring for picking finalists
• Provided “winner/loser” analysis of the exchange offerings versus the current retiree plan offering
• Cataloged additional questions and managed vendor answers
• Attended and facilitated on-site finalist meetings at vendor locations
• Negotiated the contract and service level agreement terms

With SBA assistance, our client identified one firm that best matched their profile of an ideal vendor partner. The exchange provided retirees more choice between providers as well as access to other benefits such as dental and vision. The vendor provided robust call center and internet support tools that assisted the retirees with picking the best plans for their specific needs. The client’s benefits staff was no longer burdened with managing the retiree health plans and was freed up to focus on other key areas of their jobs.