Canada (EN)
We’re entering one of the most consequential periods for the retiree health benefits market in more than a decade. The decisions employers make in the next few months will determine whether they stay ahead of the curve — or get caught in a wave of volatility driven by CMS’s preliminary 2027 Medicare Advantage and Part D payment guidance.
This is a structural shift.
And it will reshape the economics of group retiree medical plans as we know them.
What’s changing in Medicare — and why it matters
CMS’s proposed changes are putting real financial pressure on the group Medicare market. Flat plan payments, a more constrained risk‑adjustment model, and rising medical trends will make traditional group retiree plan designs increasingly difficult to sustain.
For employers relying on rich benefits and uniform plan structures, the impact will be significant.
Without a strategy change, many organizations will face:
- Premium increases
- Benefit reductions
- Year‑to‑year volatility
Organizations that continue with the status quo now face substantial risks.
Where employers need stability — how Alight can help
Alight is uniquely positioned to support organizations through this inflection point. Our Retiree Health Solutions team has guided many of the nation’s largest employers through previous market disruptions — and we’ve modernized our model to meet this moment.
Alight’s retiree health approach delivers:
- Elimination of financial volatility
- Long‑term cost stability
- Choice, clarity, and confidence for retirees
- A consistent experience without annual benefit disruption
While employers may be somewhat aware — they often lack visibility and clear options.
ALIGHT RETIREE HEALTH SOLUTIONS
A better way to do retiree health
Our Retiree Health Solutions guide your people into their next phase of life.
The window to act on group Retiree Health is narrow
Acting early is important because of several factors that are in play right now:
- Internal alignment takes time. HR, Finance, Accounting, Labor Relations, Total Rewards, and the C‑suite all play a role. These processes are measured in months, not weeks.
- Multi‑year Medicare Advantage contracts won’t shield employers from CMS‑driven financial adjustments. Carriers can re‑open financial guarantees when reimbursement rules change.
- The go‑live timeline is already tight. Employers need to finalize contracting no later than June 2026 to ensure a smooth transition for January 1, 2027.
Waiting reduces options — right when employers need it most.
How to engage your stakeholders today
This conversation goes beyond typical benefits — it’s specifically about how retiree health shapes your organization’s future.
It’s a strategic, financial, and governance‑driven dialogue — one that leading employers are already mobilizing.
The Alight team is fully equipped to provide organizations with a Retiree Health Market Update — an entry point for helping organizations:
- Understand the financial impact of CMS’s proposed changes
- Quantify their exposure to group Medicare Advantage arrangements
- Explore strategies that protect against volatility and preserve promised retiree benefits
- Stay ahead of TPEs, consultants, and competitors already in the retiree health benefits field
Is your organization prepared to address the implications of CMS’s preliminary 2027 Medicare Advantage and Part D payment guidance for the market?
