3M to dump retirees from medical coverage
Ed Morrissey
HotAir.com
10/5/2010
Remember when Barack Obama repeatedly promised that no one’s current coverage would have to change if Congress approved the health-care overhaul he demanded? When the ObamaCare bill passed, the Associated Press suddenly discovered that the change of tax law that would supposedly generate billions of dollars to pay for the costs of the bill would also drive companies to dump retirees from their existing drug coverage and push them into Medicare. Minnesota-based 3M became one of the first large corporations to do just that — and push retirees off of all their plans as well:
3M Co., citing new federal health laws, said Monday it won’t cover retirees with its corporate health-insurance plan starting in 2013.
Instead, the company will direct retirees to Medicare-backed insurance programs, and will provide reimbursement for that coverage. It’ll also reimburse retirees who are too young for Medicare; the company didn’t provide further details.
The company made the changes known in a memo to employees Friday; news of the move was reported in The Wall Street Journal and confirmed Monday by 3M spokeswoman Jackie Berry.
The ObamaCare bill created a fund to subsidize employers who didn’t dump their retirees, but the WSJ notes that it simply wasn’t enough to change the negative incentives created by the government interventions…
…3m has 23,000 retirees, many of them likely to be living in Minnesota. They’re also likely to vote in the upcoming midterms, perhaps even more likely now than ever. That won’t be good news for House Democrats in the Minnesota delegation hoping to win a new term in four weeks.
Read the complete article at HotAir.com
