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Perspectives beyond Health Promotion

Cutting Back on Retiree Health Benefits Retirees who worked for large companies, particularly unionized workers, have gotten used to a rich package of health benefits over the years. Like active workers, however, they are beginning to see cutbacks in those benefits. Half the employers offering retiree health benefits made changes over the past two years, and most of those changes will cost retirees more money, according to the new Foster Higgins Health Care Benefits Survey. The most common changes made were to require retirees to pay more for their premium contribution and deductible, and to mandate tighter eligibility requirements based on years of service. Not all retirees are taking this news passively. Soon after Navistar International Corporation in Chicago announced a cutback in benefits for retirees, which will save the company about $90 million a year, the retirees filed a lawsuit in Federal District Court to block the action. The news also isn’t good for future retirees. The survey found that fewer companies plan to offer health care benefits to future retirees under age 65 as well as those age 65 and older who are eligible for Medicare. Many people carry supplemental coverage to pay for bills that Medicare does not cover.