Employer-sponsored Medicare HMO strategies: common selection criteria

Retiree health care costs have increased at an astronomical rate for employers. In order to gain control over these costs and reduce Financial Accounting Standards FAS 106 expense and liability, many employers have turned to Medicare HMOs as a solution. The Medicare HMO arena has exploded over the last few years. With the wide diversity of Medicare HMOs in the marketplace, the prospect of selecting Medicare HMOs can be daunting. However, as more and more employers offer Medicare HMOs to retirees, some common criteria to assist in the selection process have evolved. These criteria are in the categories of sufficient access, high quality care, generous benefit levels, at affordable cost. These are by no means the only criteria employers should consider; however, they should serve as a solid foundation from which a Medicare HMO strategy can be developed.