Nation's Largest Private Medicare Exchange Crosses Threshold:
$1 Billion Saved For U.S. Employers Providing Retiree Health Benefits
BURLINGAME, California — June 8, 2010 — (BUSINESS WIRE) Extend Health, Inc. announced today that the company has crossed the threshold of $1 billion in savings for U.S. employers providing retiree health benefits. The Extend Health Exchange opened for business on November 15, 2006 and has since served more than 250,000 retirees sponsored by some of the nation’s largest companies, including each of the “Big Three” auto manufacturers, as well as a growing number of public sector employers. Extend Health, Inc. is the operator of the country’s largest private Medicare insurance exchange.
The savings were calculated by comparing the actual cost of client legacy group plans in comparison to equivalent or better individual private Medicare plans selected by each client’s retirees from the more than 3,500 plans on the Extend Health exchange. Employers leveraging the exchange continue to fund health care benefits while Extend Health helps retirees choose plans that best suit their needs, guides them through the enrollment process and administers the plans.
“A health care exchange removes wasteful administrative costs and market inefficiencies out of the health care system, while empowering consumers with choice,” said Bryce Williams, CEO of Extend Health. “Keeping the quality of health care at the highest level, while eliminating extraneous non-medical costs, is a key reason why health insurance exchanges emerged as a central strategy of health care reform legislation. Our experience demonstrates that exchanges provide a unique and powerful way for employers to meet their health care obligations while managing costs. Exchanges offer a rational and predictable way for employers to subsidize health care for the foreseeable future.”
In addition to employer savings, the average retiree who purchased an individual Medicare plan on the exchange saved on average approximately $600 a year in total out-of-pocket costs.
Extend Health offers private Medicare plans from more than 55 national and regional carriers, including large insurers such as AARP, Aetna, Cigna, Humana, regional BlueCross BlueShield systems, and UnitedHealthcare.
About Extend Health
Extend Health, Inc. was founded in 2004 to serve Medicare-eligible retirees and their corporate sponsors. The company operates the country’s largest private Medicare exchange and has helped more than 250,000 retirees compare and choose the private Medicare plan that best meets their needs and budgets. With Extend Health employer solutions, Fortune 500 companies, unions, and public sector organizations can save up to 30% on retiree health care compared to legacy employer group plans. For more information, visit Extend Health on the web at www.extendhealth.com.
- Rob Wyse