Northrop Grumman changing retiree health benefits
By RACHEL ROUBIEN rrubien@carrolcountytimes; RACHEL ROUBIEN rrubien@carrolcountytimes | |
Proquest LLC |
After a dozen years,
Last month, he received a letter in the mail that shocked him.
Instead of company coverage, employees will use a broker to choose from a variety of
A letter sent last month to retirees cites recent legislation and developments in the health insurance industry as the impetus for this change effective
In 2013, about 28 percent of companies with 200 or more employees offering health benefits also provided retiree coverage. This percentage has generally decreased over the years, as 34 percent of large firms offered retiree health plans in 2006 compared with the 66 percent that did so in 1988, according to a Kaiser Family Foundation Report last August.
And of the large firms offering retiree health benefits, the majority give this coverage to early retirees under 65; however, only two-thirds also provide retiree health benefits to
Private-sector employers are not required to provide retirees with health benefits, according to the
The motivation behind
This sort of change doesn't have a one-size-fits-all cost to the retiree. It depends on what the company's plan was and what
She's seen retired employers from two other companies recently walk into her office asking for advice after their former employers had made changes to retiree health coverage, she said.
"We believe our retirees over 65 will find that the newly available plans and rates typically provide a broader range of options to fit their health and financial needs, potentially saving them money,"
Additionally, some employees receive subsidies for their retiree medical coverage -- a practice the company ended for most employees hired on or after
Bruns, a resident of
Last week, Bruns attended a company-sponsored session explaining just what the cancellation meant, and afterward, he said the new offerings "looked good on the surface."
But until he talks with a broker and decides the plan right for him and his wife, it's unclear if he will be paying more or less out of pocket for health insurance and prescription drugs.
"We're up in the air right now," Bruns said.
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