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Protecting
the Members
Protecting Retiree
Health Care Benefits
A Department of Labor study,
"Retirement Benefits of American Workers," shows a steady decline in retiree
health care coverage by U.S. companies. The study found that:
Less than one-third of retirees age 55 and over (27%) —
representing
4.7 million of the 17.4 million retired persons—have health benefits from a prior
employer. (In 1988 the figure was 37%.)
While health insurance premiums of retirees have steadily increased to
an average of $840, the number of employers requiring retirees to pay all or part of the
insurance premium increased.
Premiums for Medigap insurance, which pays what Medicare does not, have
increased as much as 23% in the last three years.
HOW SAFE ARE YOUR EMPLOYER'S
RETIREE HEALTH BENEFITS?
Can the retiree health benefits provided by your employer be cut? Here's
what to look for in plan documents:
Check all your plan documents with the following questions in mind:
If there is no specific language describing retiree health benefits in
your plan documents, it is unlikely that you will be able to prove coverage exists.
LANGUAGE THAT PROTECTS
However, there is language on employee health benefits that has
held up in court. The language you want, or need to negotiate, says something like
this: Basic health care coverage will be provided at the company's expense
for the lifetime of the employee.
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