Tuesday, February 07, 2006 Health
Care Marketplace
Nissan Announces it Will Limit Health Benefits for
U.S. Retirees
Japanese automaker Nissan will cut health
insurance and pension benefits for U.S. employees in what the company
calls an effort to "remain competitive," the Los Angeles Times reports. Nissan informed
workers with manufacturing jobs that, starting at age 65, they will
receive an annual stipend to supplement Medicare coverage instead of
receiving supplemental health care coverage from the company. A Nissan
spokesperson said that once changes are made, a qualifying retired couple
could receive $5,000 in addition to annual 3% increases. In addition,
workers in nonmanufacturing jobs were informed that their retiree health
care coverage would end at age 65, with no stipends to cover supplemental
insurance costs. According to the Times, the plan will not
affect too many U.S. workers initially because the company has a limited
number of retirees in the country. The first U.S. plants opened about 20
years ago. Nissan expects to have about 4,000 retirees in the next decade,
the Times reports. The new plan will take effect in January
2007. U.S. companies in many industries have cut retiree benefits, but
Nissan is "leading the automotive industry with such changes," according
to Paul Fronstin, director of the health research program at the Employee Benefit Research
Institute (O'Dell, Los Angeles Times, 2/7).