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Within ten years, over 12 million from the Baby Boomer generation will be of retirement age.

For many Dallas Fort Worth businesses, this will be a big loss. It won't be easy to replace their knowledge and talents.

Here is an affordable way for Dallas Fort Worth area companies to change their employee benefits plans to retain these Baby Boomer employees.

Any major medical claim could have a negative impact on insurance premiums, regardless of age. But older employees will have more major medical claims than younger employees. So a group medical plan with older employees will cost more.

Since an employer that retains retirement age employees could have more claims, they will pay a much higher rate for their group medical premiums.

Group Benefits Advisors can help Dallas Fort Worth area employers design a special employee benefits plan will help retain their retirement age employees without fear of raising the group health insurance rates.

This plan has big benefits for both the company and for retirement age employees. The special employee benefit plan documents that we develop for our clients let the employer exclude retirement age employees from their employee group medical plan. The employers then sets up a Medical Expense Reimbursement Account that lets them reimburse any retirement age employees for Medicare Part A and B premiums on a pre-tax basis, and reimburse Medicare supplement plan premiums on an after tax basis.

The employee benefits plan document can also be set up to let the employee reduce their pretax salary by any sum the employee desires, in return for the employer contributing the same amount into a medical expense reimburse account to pay for current or future medical expenses or to pay for long term care insurance premiums.

Here is how this helps Dallas Fort Worth Texas area employers. The employer retains the valuable retirement age employees without impacting their group medical insurance premiums.

Here is how this helps Dallas Fort Worth Texas post-retirement age employees. First, the retirement age employee continues to work doing something that they truly enjoy. Second, the employee continues to save money for retirement, rather than draw on retirement funds.

Third, the employee can actually get a better health plan through medicare and a medicare supplement plan and at a lower cost than if they were part of their employer's group medical insurance plan. Fourth, the employee could even contribute a portion or all of their salary pretax into a retirement medical expense account that they can use in the future for medical expenses, including long term care. And finally, by doing this the employee could lower their salary enough to still collect social security.

Employees know that they need to save a lot of money just to pay for future medical expenses after retirement. This plan by Group Benefits Advisors is a great way for employers to retain valuable baby boomer employees and help these employees save for their future medical needs.

Mike Chapman is a principal with Group Benefits Advisors of Dallas, Fort Worth Texas, an employee benefits consultant and group health insurance broker that specializes in out of the box solutions for small and mid-sized businesses in North Texas. His firm helps business structure cost-effective and affordable employee benefits that help them to attract and retain high caliber employees. Implementing his solutions can usually save employers between $1,000 to $2,000 per employee per year with no reduction, and often an increase in the overall benefits to employees. Visit Mike Chapman's web site at http://www.GroupBenefitsAdvisors.com where you can subscribe to his newsletter. You can also contact him at mtchapman@groupbenefitsadvisors.com

posted by wq13224  # 4:04 PM