Ford Retirees To Lose Health Benefits

The Detroit News reports that Ford retirees will be removed from the company retiree health plan in 2008. Instead, they will receive $1,800 per year in a health retirement account, which can be used towards Medicare premiums and out-of-pocket expenses. This is the latest attempt by the auto industry to reduce health spending by shifting costs to retirees. It is not likely to resolve the issue, however - we can expect more cuts in future years, affecting retirees, current employees, and new hires, until a more comprehensive, system-wide solution is in place.