If you think you are set for life with the extended medical insurance that you're corporate or government employer promised you upon retirement, think again.
Employers are cutting retirees loose from their assumed covenant of lifetime extended medical coverage and offering insurance plans from independent vendors.
The employers are supplementing the retiree's healthcare premiums, to varying degrees, with cash payments to the employee.
This means that the retiree is now exposed to substantial initial premium costs beyond the employer supplement, which will surely increase either due to employer reduced subsidy or increased premiums by the healthcare provider. A minimum 4 percent per annum is expected.
Never miss a local story.
Most retiring baby boomers and others never made plans for the costs related to health insurance premiums (beyond Medicare); they thought lifetime employer coverage meant lifetime.
Those who retired some time ago are finding their income diminished by inflation or other unforeseen expenses. In either case, this turn of events coupled with other escalating expenses will have quite an impact on the standard of living of some retirees and a devastating impact on others.
Try to imagine the plight of those hard-working people who find themselves too poor to retire and too ill to work.
Corporations are looking to divest themselves from open-ended costs that keep escalating because they know that health care costs in general are not going to diminish any time soon.
Employer-financed retiree health care is not part of Obamacare but the costs and structure of Obamacare are impacting all healthcare costs negatively.
The excessive costs of car insurance, homeowners insurance and medical insurance, etc. are causing the middle class to go the way of the Dodo bird. Ah yes, hope and change.
I hope this letter helps to forewarn those who either retired or are soon to be retired.