Control Unsustainable Medical Legacy Costs with ADN’s Low-Cost Medicare Advantage Wrap Program
Employer groups often face large legacy expenses from defined medical benefit programs for retired employees, and these continue to increase as additional employees retire. In today’s business and insurance climate, with revenue decreasing and premiums increasing, the burden can become crushing.
How can the group continue to meet these obligations as they threaten to become unsustainable?
ADN Legacy Solutions has the answer: our exclusive Low-Cost Medicare Advantage (MA) Wrap program, offered in association with Humana.
Read on to learn more. Better yet, watch the video below and then request a no- obligation quote for your group today.
Reduce Employer Cost
Most employers meet the defined medical benefit program requirements for their retirees by implementing a Medicare Advantage (MA) program for all employees. As a result, they face steadily increasing fixed costs of whatever insurance company they can find to meet their coverage needs.
ADN developed our Legacy Solutions MA Wrap plan, offered in association with Humana, to reduce fixed costs without sacrificing required benefits. The ADN Legacy Solutions incorporates selected, low-cost Medicare Advantage plans and employer funding for the out of pocket expenses of post-65 retirees. This actually enhances required benefit structures while at the same time, decreasing employer cost by 30- 40%. Our Solution caps the employer’s maximum cost at the same level (if not lower) as their current fixed cost to have Medicare Advantage plans for all covered employees.
Low-Cost Medicare Advantage Wrap – How It Works
Under the ADN Legacy Solutions MA Wrap plan, employees receive the same or better benefits as those they had previously -- but due to the new funding arrangement, the employer experiences both a lower claims cost and a maximum cost cap below what they previously faced.
Here’s how it works.
- The current fully insured Medicare Advantage plan is replaced by an extremely low-cost group or individual MA plan from Humana.
- ADN Legacy Solutions administers the plan’s self-funded portion to ensure that the benefits provided are equal to or greater than those of the fully funded plan.
- Since Out of Pocket (OOP) maximums on the low-cost MA plans are greater than with fully insured MA plans, an Aggregate Stop Loss (SL) policy can be added. The SL policy limits the employer’s or plan sponsor’s claims liability, with the total maximum cost equal to or less than their current MA rates.
The ADN Legacy Solutions MA Plan is not hard to understand, but it works hard to control costs for employers and improve the experience of their post-65 retirees.
Improve Retiree Experience
The ADN Legacy Solutions MA plan could not be simpler for your retirees. Following enrollment, each employee receives two cards:
Medicare Advantage coverage card, from Humana
ADN Legacy Solutions MA Payment Card, from ADN
When accessing medical care, the retiree presents the new Medicare Advantage coverage card, just as they do now with the employer’s current plan. When asked how they will be paying their share of the costs, however, the retiree hands over the ADN Legacy MA Payment Card to cover the out-of-pocket portion.
ADN Legacy MA Payment Card™
The ADN Legacy MA Payment Card is a specially coded Mastercard® debit card administered by ADN Administrators. The card is restricted, meaning it works only when used to pay eligible medical providers.
When your retiree swipes the card, their share of the covered expense is paid from plan funds. The employee pays nothing out of pocket. The card transaction automatically creates a claim within the ADN system which we administer to ensure that employer funds are being properly applied and that the program is smoothly and accurately providing expected benefits to the retiree.
The ADN Legacy Solutions MA Plan reduces employer expense and improves retiree experience. Click below to get more information.
For more information on the ADN Legacy solutions Low-Cost Medicare Wrap plan and a free, no-obligation quote, please call us at (248) 901-3710.