$5 Billion Retiree Subsidies for Big Companies to End

Friday, 09 Dec 2011 01:57 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

A $5 billion program to help companies such as AT&T Inc. pay health premiums for retirees under age 65 will end because it’s almost out of money, the U.S. said.

Claims to the reinsurance program filed after Dec. 31 will be rejected, the U.S. said today in a notice today. The Obama administration projected in February that money for the subsidies would last through the end of fiscal 2012. A total of $4.5 billion has been paid out as of today, the U.S. said.

The program “has significantly benefited employers across the country,” the government said in a statement.

The United Auto Workers union received $387 million from the program through Dec. 2, more than any other organization. AT&T was paid $214 million and Verizon Communications Inc. got $163 million.

By law, entities that receive money from the program must use it to pay the cost of retired workers’ health insurance, said Bennett Blodgett, a spokesman for the Center for Consumer Information and Insurance Oversight. The agency oversees the program, which was created by the 2010 health-care law.

“High health-care costs are hurting businesses across the country and threatening health-care coverage for early retirees,” he said in an e-mail.

The percentage of large companies providing early retirees with insurance fell from 66 percent in 1988 to 29 percent in 2009, according to the Kaiser Family Foundation, a nonprofit research organization based in Menlo Park, California.

 

© Copyright 2014 Bloomberg News. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Chicken Pox Outbreak Locks Down Immigrant Facility

Thursday, 31 Jul 2014 12:26 PM

An outbreak of chicken pox has slapped a quarantine lockdown on a New Mexico detention facility housing 500 illegal immi . . .

Most Illegal Border Kids Relocated to Texas

Thursday, 31 Jul 2014 11:00 AM

Federal officials have placed more unaccompanied minors from Central America in Texas than any other state, according to . . .

Sudan Woman Who Faced Death over Faith Heads to US

Thursday, 31 Jul 2014 09:54 AM

A Sudanese woman who refused to recant her Christian faith in the face of a death sentence is heading to the United Stat . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved