Business
GM revises retiree health plan
NEWS IN BRIEF — Posted Feb. 27, 2006
General Motors Corp. announced a new collection of cost-cutting measures in early February, including benefit changes for salaried retirees that the company expects will save about $900 million per year.
The company said it will cap contributions to retirees' health care benefits at 2006 levels. The change, GM estimated, would trim its total health care costs by about $4.8 billion.
Last fall, General Motors had announced an agreement it had forged with the United Auto Workers to limit the company's health care costs by requiring retired workers to pay monthly premiums for their health coverage. Ford Motor Co. announced a similar deal in December 2005.
Nissan Motor Co. Ltd. joined the trend earlier this month as well, as the company reportedly told American workers it would pay retirees an annual stipend and would drop company-sponsored health care coverage.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2006/02/27/bibf0227.htm.