Unilever Dumps Retiree’s In To Medicare

Comments

  1. Let’s be honest – the real reason employers are dumping retiree health insurance is to save money by reducing the huge liabilities they have on their books. Employers have been dumping retiree health insurance since the early 90’s when FAS 106 accounting rules were adopted – requiring companies to expense hugh amounts for future liabilties. The lost tax deduction for receiving Fed subsidies – from the Healthcare bill – is peanuts compared to the overall cost. Honeywell is saving $130 million

  2. Bob Vineyard says

    No doubt retiree health plans are an albatross and have been for some time. About the only employers left that can afford these plans are government entities with unlimited power to tax and those that have heavy union involvement.

    Mixing the two, union and govt and you have a marriage made in Hell.

    Any time the govt get’s involved private industry reacts and usually to the detriment of the public. When ERISA became law it didn’t take too long before traditional defined benefit pension plans went away.

    More govt intrusion = higher costs all around.

    The impact of Obamacare is just another reason to drop medical insurance plans.

Speak Your Mind