Retiree Benefits

Pre-65 Retirees

With many changes in the delivery of group health insurance benefits, most group insurance plans are no longer offering retiree coverage for Pre-65 retirees. ICSO H&W Plan is proud to offer services to Pre-65 Retirees (and eligible spouses). This relationship gives our members access to a wide variety of plans in the individual health insurance marketplace.

What is it?

  • The Pre-65 retiree program administered through ICSO H&W is a premium reimbursement program.
  • For the Employer: A method to offer each Pre-65 retiree the opportunity to purchase their own, personal health insurance policy, while controlling the costs for the employer.
  • For the Retiree: Access to the services of licensed benefit professionals who work individually with each retiree providing consultation for individual healthcare programs that best fit their needs.

What are the requirements?

  • Retirees (and spouses) must meet certain eligibility requirements, defined by the participating employer equal to minimum age and years of service.

How does it work?

  • The Retiree can select any guarantee-issue individual health insurance plan available within their market area (zip code). The ICSO H&W administration team has several resources available to assist Pre-65 retirees in finding coverage.
  • Participating employers set a funding level for Pre-65 retirees.
  • Upon retirement, Pre-65 retirees (and eligible spouses) are eligible for a monthly reimbursement of healthcare premiums up to a predetermined amount set by the employer.
  • Employer funds a Health Reimbursement Arrangement (HRA) and premium reimbursements are distributed monthly via direct deposit.

What is the cost?

  • Employers have the freedom and flexibility to set their funding levels for Pre-65 retirees. Due to the wide variance in premium costs for the individual plans in the marketplace, we advise the employer to set a limit or maximum amount for the premium cost-share.
  • Funding examples:
    • The employer can set the pre-65 funding levels similar or equal to the cost-share for the active employee plans
    • The employer can set the pre-65 funding levels similar or equal to the post-65 HRA amounts
    • The employer can set a dollar limit up to a certain maximum, such as a percentage of the premium not to exceed a set dollar limit/
  • Annual HRA Account Administrative Fee* Per Retiree: $500

*HRA account administrative fee is in addition to HRA funding