Towers Watson and Extend Health Inc., operator of the largest private Medicare exchange in the country, have formed a strategic alliance which will provide employers and their Medicare-eligible retirees with health care solutions that combine specialized retiree medical transition consulting with the advantages of individual Medicare plans purchased on a private exchange.

Employers face many financial and administrative challenges when managing Medicare-eligible retiree health care programs. Solutions provided by this merger will simplify transitioning retirees to the individual market, enabling them to manage costs while giving retirees more choice and buying power.

The Towers Watson and Extend Health alliance comes at a time when many companies are reviewing their retiree medical strategy. According to Towers Watson/ISCEBS research, 60 percent of employers that currently offer retiree medical plans are rethinking their programs for 2012 or 2013.