Chicago Tribune Examines Retiree Health Coverage, Wellness Programs

Main Category: Seniors / Aging
Also Included In: Health Insurance / Medical Insurance
Article Date: 13 Feb 2008 - 5:00 PDT

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The Chicago Tribune on Sunday published two articles about employer-sponsored health coverage. Summaries appear below.

• Retirees: Experts say workers need to plan for higher risks associated with funding their own health care in retirement, the Tribune reports. According to the Tribune, some financial planners are encouraging "all but their wealthiest clients" to put off retirement until they reach age 65 and qualify for Medicare. Even retirees who currently have employer-sponsored coverage "may be facing more risk" because certain industries are considering or have adopted voluntary employees' beneficiary associations, under which "[i]nvestment gains and workers' own cost containment will determine whether money will be there to meet retirees' needs," the Tribune reports (Kidd Stewart, Chicago Tribune, 2/10).
  
  
• Wellness programs: The Tribune examined mandatory wellness programs that fine employees who do not try to adopt healthier lifestyles. According to the Tribune, while such programs raise "a host of legal and ethical questions," some employers believe the benefits of the programs outweigh the risks of legal action. Federal guidelines under the Health Insurance Portability and Accountability Act "lessen employers' legal risks" by allowing them to encourage workers to meet certain health standards as long as rewards and fines are less than 20% of the total cost of coverage and alternatives are provided for workers who cannot meet the standards because of medical reasons, the Tribune reports. While some employers take a "wait-and-see attitude" to wellness programs, there is "little evidence" that punitive measures drive down costs or that they work better than incentives, according to the Tribune (Rose, Chicago Tribune, 2/10).

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