Retiree benefits

PWright

We have a large group of employees. There are approximately 1,500 highly compensated executives. Employees may retire at age 55. ISSUE: What can the employer do to assist the early retirees in obtaining post retirement medical coverage until they become eligible for Medicare? The employer would rather not contribute towards the post retirement coverage. Can we carve out the executives into their own medical coverage and include post retirees inside the group? This would be similar to having COBRA coverage for the post retirees except for the fact it could extend to age 65. Is there a way to do a voluntary carve out and offer coverage for this group of post retirees? Are there any issues such as discrimination that the employer would need to consider?