AP/Cincinnati Enquirer Examines Health Benefit Concerns Of Retired Auto Workers

Main Category: Health Insurance / Medical Insurance
Article Date: 23 Mar 2006 - 11:00 PDT

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The AP/Cincinnati Enquirer on Monday examined how "[r]etired autoworkers who spent decades together on assembly lines and picket lines find themselves facing off in a dispute over" an effort by General Motors, Ford Motor and the United Auto Workers to "require retirees to pay several hundred dollars more each year for their health care." According to the AP/Enquirer, some retirees support the effort, saying it is "necessary to stem the automakers' staggering losses." However, critics "say GM, Ford and the union are breaking their promises and trying to stifle retirees' objections." The proposed agreements, which have been approved by active workers at GM and Ford, would increase GM and Ford's hourly retiree deductibles, premiums and copayments up to $752 annually for families and $370 for individuals. In addition, the agreements would require active hourly workers to contribute a percentage of future wage increases to trust funds that would be used to reduce payments. A federal judge is expected to rule on the GM agreement this month, after considering objections filed by retirees and their dependents. According to the AP/Enquirer, 1,250 of 476,000 GM retirees and dependents filed objections, and Ford retirees have until April 28 to file an objection. A judge will consider objections to the Ford agreement at a hearing on May 31. Some GM retirees have said they opposed the agreement but did not realize they could object because the 80-page explanation sent to them was unclear. Mark Baumkel, an attorney who represents GM and Ford retirees who oppose the agreements, said he was contacted by hundreds of GM retirees who did not know they were able to object until the deadline had passed. William Payne, an attorney representing retirees who support the agreement, said retirees received a brochure that highlighted the changes, and at least 500 people called a toll-free number to ask questions (Durbin, AP/Cincinnati Enquirer, 3/20).

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