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New Health Reimbursement Arrangement Solution from Aon Hewitt Enables Companies to More Efficiently Reimburse Retirees Transitioning to the Aon Retiree Health Exchange

LINCOLNSHIRE, Ill., Oct. 30, 2014 /PRNewswire/ -- Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE: AON), today announced The Aon Retiree Contingent HRA™, a new and innovative health reimbursement arrangement (HRA) strategy that better aligns employer and retiree cost-management objectives and encourages retirees to make efficient health plan choices in the individual market.

Aon Corporation ( is a leading provider of risk management services, insurance and reinsurance brokerage, human capital and management consulting, and specialty insurance underwriting. There are 37,000 employees working in Aon's 500 offices in more than 120 countries. Backed by broad resources, industry knowledge and technical expertise, Aon professionals help a wide range of clients develop effective risk management and workforce productivity solutions.

In general, most employers that move retirees to a private health exchange introduce an HRA to support the delivery of a tax-free reimbursement to pay for retirees' premiums and/or out-of-pocket costs.  Traditional HRA strategies allow employers to reduce cost to some extent while creating opportunities for most retirees to find equal or better coverage in the individual market. These approaches leverage a "one-size-fits-all" reimbursement strategy regardless of retirees' individual health care needs or local market efficiencies. This generally results in overspending by the employer and inefficient health care selections by retirees.

The Aon Retiree Contingent HRA allows employers that are moving retirees to the Aon Retiree Health Exchange to structure the HRA reimbursement so that it aligns with actual retiree health care needs. It leverages the market-leading plan choice architecture and administrative capabilities of the Aon Retiree Health Exchange to deliver the tax-free reimbursement to retirees and market areas that need it the most, and away from more efficient market areas that can deliver greater value to retirees without significant employer funding. This creates a more efficient and cost-effective overall HRA strategy and eliminates much of the waste associated with traditional HRA approaches.

"While many employers considering a move to an exchange-based individual market health care strategy want to maximize their savings, they also want to ensure their retirees can share in those savings," said John Grosso, actuary and leader of the Aon Hewitt Retiree Health Care Task Force. "Our new HRA strategy provides more opportunities for a stronger 'win/win' outcome and can generate greater employer savings than traditional HRA approaches. It creates a financial incentive for retirees to find value in the individual market through the Aon Retiree Health Exchange, as opposed to using employer reimbursements to simply purchase high cost, first dollar coverage that most retirees don't actually need."

With access to more than 90 health insurance carriers and 3,700 different plans, the Aon Retiree Health Exchange features a highly personalized retiree enrollment experience to help guide retirees and their families through the process of selecting and enrolling in health coverage. The Aon Retiree Health Exchange is staffed with dedicated and licensed benefits advisors who provide one-on-one counseling and are available year round to assist retirees with any questions. Retirees also have access to a variety of education materials, decision tools and resources.  

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About Aon Hewitt
Aon Hewitt empowers organizations and individuals to secure a better future through innovative talent, retirement and health solutions. We advise, design and execute a wide range of solutions that enable clients to cultivate talent to drive organizational and personal performance and growth, navigate retirement risk while providing new levels of financial security, and redefine health solutions for greater choice, affordability and wellness.  Aon Hewitt is the global leader in human resource solutions, with over 30,000 professionals in 90 countries serving more than 20,000 clients worldwide.  For more information on Aon Hewitt, please visit

About Aon
Aon plc (NYSE:AON) is the leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 66,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative and effective risk and people solutions and through industry-leading global resources and technical expertise. Aon has been named repeatedly as the world's best broker, best insurance intermediary, best reinsurance intermediary, best captives manager, and best employee benefits consulting firm by multiple industry sources. Visit for more information on Aon and to learn about Aon's global partnership with Manchester United.

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