Retiree Health Benefits

December 6, 1991 • Volume 1, Issue 29
Companies are cutting benefits, adding fuel to calls for reform
By Mary H. Cooper

Introduction

A change in corporate accounting rules may have a profound effect on health insurance for retired workers. Under the new rule, due to take effect at the end of next year, companies will have to show the projected costs of providing health insurance benefits to their retirees as a liability on their annual financial statements. In many cases, the change will result in a significant loss in reported earnings. To minimize the potential losses, a number of firms have begun asking retirees to shoulder a greater part of the costs of their coverage. Some companies have dropped coverage for retirees altogether. The drop in retiree health benefits adds one more dilemma to the broader crisis of health care in America. An estimated 37 million people lack any insurance at all to cover health-care costs, which now are rising by about 20 percent each year.

ISSUE TRACKER for Related Reports
Older Americans and Senior Citizens
Sep. 30, 2011  Prolonging Life
Mar. 15, 2011  The Graying Planet
Oct. 13, 2006  Caring for the Elderly
Feb. 20, 1998  Caring For the Elderly
Aug. 01, 1997  Age Discrimination
Dec. 06, 1991  Retiree Health Benefits
Aug. 19, 1988  The Elderly in an Aging America
Nov. 21, 1986  Home Health Care
Aug. 06, 1982  Housing Options for the Elderly
Nov. 10, 1971  Plight of the Aged
Nov. 06, 1963  Nursing Homes and Medical Care
May 20, 1959  Housing for the Elderly
Sep. 04, 1957  Health of the Aged
Aug. 01, 1949  Older People
Mar. 29, 1938  The Job Problem for Older Workers
BROWSE RELATED TOPICS:
Employee Benefits
Health Insurance and Managed Care
Retirement, Pensions, and Social Security