Retirees Worry Former Employers Will Cut Drug Benefits, Push Them Into Cos

[NNN0LHI]

http://ap.tbo.com/ap/breaking/MGB2XRXQPUD.html

Retirees Worry Former Employers Will Cut Drug Benefits, Push Them Into Costlier Medicare Plans

MANASSAS, Va. (AP) - Fred Bena is reluctantly learning about Medicare prescription drug insurance, figuring that his former employer's generous retiree health benefits will not last and he will be forced into a costlier Medicare plan.

The retired airline worker is among the 11 million to 12 million Americans 65 and older who receive drug coverage from their former employers.

The number of companies offering health benefits to retirees has been declining for at least 15 years. And no one knows whether the Medicare drug insurance that begins in 2006 will accelerate that trend despite a provision in the new law designed to entice companies to maintain coverage.

"I can foresee the company saying, 'This is costing us too much money, so we're bailing out,'" said Bena, 77. "That's my big fear."

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[74dodgedart]

1. Ain't capitalism great

[Tempest]

2. NNNOLHI, do you have a link?

Thanks.

[NNN0LHI]

5. I added it to the original post. Sorry n/t

[Hell Hath No Fury]

3. My Mom is one of those retirees...

who is worrying.

She used to work for an employee benefits firm, so she has great coverage which includes drugs. If she is dropped, it will be a disaster for her.

As Jon would say, "Damn you Bush!"

[happynewyear]

4. I am one of them too

The place that "retired" me wrote me a letter saying that they have reviewed the Medicare RX drug information and have decided that is is NOT to their advantage to adopt it. Whew, needless to say!

:dem: :kick:

[NNN0LHI]

6. If you have a union contract wait until it is time for renegotiation

Bet that decision will change then.

Don

[happynewyear]

9. they cannot renegotiate right now

and I doubt they will next year. They've been doing this for the past couple of years. I hope you are wrong. Luckily, I am not using very many drugs.

I feel very sad for others that are though.

[MaineDem]

7. I'm worried too

I'm retired and have good benefits now but we're always worried that we'll get the letter telling us things have been cut.

I feel helpless...there's no contact for me at my former corporation. It's like they handed me the pension and said "see ya".

[SeattleDem]

8. wasn't there a tax incentive for companies NOT to drop coverage?

I recall some type of incentive to prevent this from happening. Maybe that will help some retirees in the short-term, but I bet the incentives don't last forever.