Business
Survey: More businesses reaching cap on retiree health benefits
NEWS IN BRIEF — Posted Feb. 2, 2004
Nearly one-third of businesses said they either had eliminated health benefits for future retirees or would do so in the next three years, according to a recent survey conducted by the Kaiser Family Foundation and Hewitt Associates.
The survey of 408 companies with 1,000 or more employees also found that 71% said they had increased the retiree contributions to health care premiums, while 86% said they planned to increase the retirees' share in the next three years.
"Based on current trends, we can expect that fewer retirees will have health coverage in the future and those who do will be paying more for their health care," said Drew Altman, PhD, president and CEO of the Kaiser Family Foundation.
About 10% of the companies surveyed said they had reached their cap for retiree benefits, while 20% said they would reach their own limits in the next three years. The survey was conducted before the Medicare bill, including prescription drug legislation, was passed.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/02/02/bibf0202.htm.
