Sunday, December 20, 2009

A Few Retirement Woes which leads to Health Insurance Woes

During the last few weeks of December, most companies send out the ‘usual’ information about pension, health care and 401K plans.

Recently, I received my copy of the Summary Annual Reports from both prior employers. I was a bit surprised (maybe not) that the three plans from one company are 401K savings Plan, Trusted Employee Benefit Plan and Non-Trusted Employee Benefit Plan. Wouldn’t you feel a bit uneasy if you knew you were in a ‘Non-Trusted Plan’?

Instead of saying that the Health Care Plan is not funded, a new ambiguous term Non-Trusted Employee Benefit Plan is now being used. It also is referred to as the Employee Welfare Plan.

This leads me to believe that we may expect to be jettisoned from previous employer plans by way of excessive premium increases as a means to force enrollment in any ‘public option’ plan. My retirement benefit of cost-free health insurance is now $5500.00 per year. The 2010 amount is a 73% increase from last year. Employers made promises that were in writing, yet congress allowed those promised benefits to be removed saying they were not pension benefits. That fact in itself is one of the reasons there are so many people without health insurance.

I do not know enough about the new Health Care Plan to offer an opinion. What I do know is that large corporations are taking advantage of employees by requiring the employees to pay up to 75% of their health insurance premiums. Health insurance has always been a benefit of the offer of employment.

If Corporations do not intend that health insurance benefits be a part of the ‘package’, why mention it at all. Just pay the employee a full salary and the employee can choose their insurance coverage elsewhere.

Just had to get that off my chest before I could share my
Christmas Cookies!

1 comment:

  1. Huh...I was wondering why my 87 year old MIL's insurance company dumped her 2 years ago. She was supposed to have been insured for life. Now she pays Medicare premiums and supplemental premiums and still has a gap in coverage on her $900/month cancer prescriptions. Her husband put in over 40 years at Rockwell for them to take away that little benefit. What a crime.