Large U.S. firms offering retiree health benefits to Medicare-age retirees 2000-2023

The statistic depicts the percentage of large US firms offering retiree health benefits to Medicare-age retirees from 2000 to 2023. The results show that 64 percent of firms were offering health benefits to such retirees in 2023, a slight increase from the previous year. 

Retiree health benefits

As of 2021, 89 percent of large United States firms offered retiree health benefits to early-age retirees. In that same year, 74 percent of firms with 25 to 49 employees offered their employees health benefits. Firms offering health benefits also differed based on industry. Some 69 percent of large firms in the state or local governments offered retiree health benefits, while, ironically, only 12 percent of health care firms offered retiree health benefits, one of the lowest figures among U.S. industries.

Early Retirees

For those under 65 years of age, a former employee pays around 550 U.S. dollars per month in premiums to the former employer. Health benefits in retirement are most common in the public sector but there may also be a reduction of benefits offered in this sector. The number of large firms offering benefits has decreased. For those 65 and older, Medicare coverage provides health care insurance. However, for retirees under 65, health insurance must be paid by the individual.