The federal government pays the employer a set amount for each person in the plan……..
“Over the past decade, an increasing number of employers have … [used] the government’s Medicare Advantage program as an alternative to their existing retiree health plan and traditional Medicare coverage.
Employers and insurers negotiate behind closed doors to design a private Medicare Advantage plan available only to retirees from that employer. Then, just as it does for private individuals choosing a Medicare Advantage plan, the federal government pays the insurer a set amount for each person in the plan.” MORE >>
