[EdReform]

How many union retirees will be effected?

[blau993]

The union retirees have contract protection for their highly subsidized plans. The companies would have to re-negotiate those contracts to drop them entirely or reduce their benefits.

Non-union retirees get their coverage under corporate benefit plans, which are non-contractual. The retirees who have to worry the most are those whose former employers subsidize their coverage. Those subsidies are likely to disappear. The company may then still offer the coverage, but the retiree will pay full freight.

[Grams A]

Don’t know about union retirees, but a lot of companies offered early buy-outs during the last two to three years in order to reduce their expenses, among them oil companies and some in the telecommunication indutries. So there are a lot of folks in their 50’s out there who might be affected by this - and they are not old enough for Medicare. Interesting scenario.