This comes under one of my pet peves —– short-sighted employers.
While this article talks about Medicare eligible retirees, the problem of disappearing retiree health benefits extends to pre-65 retired employees as well who are increasingly retiring with no medical benefits 😷
All this will change the retirement patterns for large employers (in ways they may not like) because with disappearing annuity pensions and the added financial burden of health insurance, who will be able to retire?
In addition, looking at the bigger picture the declining disposable income of future retirees may well mean less spending on the goods and services sold by their former employers. It may also increase pressure for more government subsidized everything thereby increasing taxes on 🤑🤑🤑🤑 working Americans and, you guessed it…those short-sighted employers.
Employer- and union-sponsored retiree health benefits have served as an important source of supplemental coverage for people on Medicare, but over time, this coverage has been eroding. This Data Note draws upon five national surveys to document the decline in retirement health insurance coverage, and discusses the implications for seniors and retiring Boomers.