Retiree Health Insurance: Recent Trends and Tomorrow's Prospects

Using both employer- and beneficiary-level data, we examined trends in employer-sponsored retiree health insurance and prospects for future coverage. We found that retiree health insurance has become less prevalent over the past decade, with firms reporting declines in the availability of coverage, and Medicare-eligible retirees reporting lower rates of enrollment. The future of retiree health insurance is uncertain. The forces discouraging its growth—rising premium costs, a slower economy, judicial challenges, and an uncertain Medicare+Choice (M+C) program and policy agenda—far outweigh the forces likely to encourage expansion.