The old ones are the best
Employers might want to think again about the construction of their medical plan in the light of the Government's efforts to encourage them to employ and retain older people. New legislation will abolish compulsory retirement and we will all be expected to work as long as our powers allow in order to avoid a pensions crisis.
Laudable as this certainly is, we should recognise that older people are more likely to claim from private medical plans. The situation will vary from company to company, of course, but a recently completed exercise on behalf of one of our clients suggested that the likely ageing of this particular workforce would add an additional 33% to the cost of the medical plan - this on top of regular inflation.
There is little that can be done about the upward drift in the age profile, but forewarned is forearmed. It is sensible for employers to get an assessment of the possible costs in their own company and to at least factor these in to their long-term plans. The extra costs may cause some health plan managers to give serious consideration to benefit limitations, cost sharing with employees, or other means of limiting cost.
The information contained in this document is of a general nature only and should not be relied upon as advice in any specific situation.
For further information, please telephone your usual contact at Buck Consultants (Healthcare):
Tel: +44 (0)118 955 7700
Fax: +44 (0)118 955 7701
Email: healthcare@buckconsultants.com
Web: www.buckconsultants.co.uk
Abbot's House, Abbey Street, Reading, Berkshire, RG1 3BD, UK
Buck Consultants (Healthcare) Limited is authorised and regulated by the Financial Services Authority
