Should a company be allowed to make changes to the health benefits of retired employees who are covered by a collective bargaining agreement?

Private-sector employers aren’t obligated to offer health benefits to retirees, and even if they do offer such benefits, employers can reduce or terminate that coverage absent an agreement to the contrary.

Why would an employer offer retiree health benefits?

Retiree health benefits are an important consideration for older workers making decisions about their retirement. For retirees with Medicare coverage, retiree health benefits can provide an important supplement to Medicare, helping them pay for cost sharing and benefits not otherwise covered by Medicare.

Do you lose benefits when you retire?

Your benefits may have included coverage for your Medical Services Plan (MSP) premiums, extended health care, prescription drugs, dental, vision and possibly even disability and life insurance. Once you retire, all of the costs that were previously covered by your employer will be transferred to you.

Can a retiree get insurance from a former employer?

Retirees who have access to a plan that provides minimum essential coverage can still enroll in a subsidized exchange plan instead, as long as they don’t enroll in their former employer’s plan.

Can a company cut or eliminate retiree health benefits?

Furthermore, when employers do offer retiree health benefits, nothing in federal law prevents them from cutting or eliminating those benefits–unless they have made a specific promise to maintain the benefits. The key to understanding your retiree health benefits lies in the documents governing your plan.

When to drop your former employer health plan?

If you’re enrolled in a retiree health plan from your former employer, you’ll generally need to wait until open enrollment to drop that plan and switch to an exchange plan, unless you experience a qualifying event during the year.

How does Medicare and retiree health plan work?

Retiree insurance. If you’re retired and have Medicare and Group health plan (retiree) coverage from a former employer, generally: Medicare pays first for your health care bills Your Group health plan coverage pays second How your retiree group health plan coverage works depends on the terms of your specific plan.

How much do employers pay for retiree health benefits?

According to the aforementioned Mercer survey, pre-65 retirees paid the full premium in 39 percent of the large employer plans (500 or more employees) offering retiree health benefits; employers paid the full amount in 12 percent of large employer plans.

Who is responsible for health benefits for pre-65 retirees?

Large employers typically self-insure the benefits for pre-65 retirees and contract with health insurers to make available their provider network and administer the benefits and claims payments on a national basis.

How does an employer-sponsored health plan help retirees?

Employer-sponsored retiree health plans help minimize the financial exposure of Medicare-eligible retirees by paying a portion of Medicare’s cost-sharing requirements, and in some instances, by paying for items that are not otherwise covered by Medicare (e.g., eyeglasses).