American Airlines Cuts Supplemental Medical Insurance Benefits for Retirees – Pay for Your Own You Now Have Medicare
Posted Sep 23 2009 10:25pm
Some employees had paid into a fund to ensure they would have coverage when they retire, well they can now but it’s on their own dollar. Those who paid into the fund will get a refund. Employees are not happy and the company is pursuing the same agreement with retirees who were in the unions as well. Coverage is being guaranteed by United Healthcare, which is nice of them, but you have to enroll by the deadlines and play by the rules to qualify. Also in the news this week, Pfizer capped out what they will pay to for retirees. Is employer provided healthcare insurance only good while you work? BD
This is a story that affects a lot of people, but they're all former American Airlines employees and their families.
American Airlines has provided insurance coverage for its retirees to supplement their Medicare coverage. In fact, since 1990, many retirees contributed money while they were in the work force to pre-fund their insurance.
Now, American says the coverage costs too much. As of Jan. 1, retirees age 65 and older, those who didn't belong to a union, will have to pay for supplemental insurance themselves.
For non-union retirees under age 65, they'll still get American-provided insurance. But those who prefunded their benefits must begin paying 25 percent of the insurance premium.
Can American Airlines legally change my retiree medical benefits? As the Plan's sponsor and administrator, American bears authority and responsibility for the oversight and well being of the Retiree Standard Medical Plan. This means the company reserves the right to modify, revoke, suspend, change or terminate the plan, in whole or in part, at any time, except as limited by provisions of any applicable state or federal law.