Should a company be allowed to make changes to the health benefits of retired employees who are covered by a collective bargaining agreement?

Private-sector employers aren’t obligated to offer health benefits to retirees, and even if they do offer such benefits, employers can reduce or terminate that coverage absent an agreement to the contrary.

Can an employer change retirement benefits?

The law allows employers to terminate or amend the terms of a retirement plan. A significant amendment to a plan, especially of the rate at which participants earn future benefits, can actually convert a particular type of plan to another type of retirement plan.

Can a company cut or eliminate retiree health benefits?

Furthermore, when employers do offer retiree health benefits, nothing in federal law prevents them from cutting or eliminating those benefits–unless they have made a specific promise to maintain the benefits. The key to understanding your retiree health benefits lies in the documents governing your plan.

What happens if I Drop my retiree health plan?

If you’re eligible for but not enrolled in retiree coverage, you may qualify for premium tax credits and lower out-of-pocket costs based on your household size and income. If you voluntarily drop your retiree coverage, you won’t qualify for a Special Enrollment Period to enroll in a new Marketplace plan.

Can a retiree use the health insurance marketplace?

If you’re retired and need health coverage, you can use the Marketplace to buy an insurance plan. If you have retiree health coverage, you have different choices to consider. Have Medicare? Learn about Medicare and the Marketplace.

What kind of health insurance do I get when I retire?

If your employer doesn’t offer health insurance for retirees, ask if you have access to Consolidated Omnibus Budget Reconciliation Act (COBRA) benefits. If you’re retiring before you’re eligible for Medicare, compare the cost of retiree health insurance or COBRA to Marketplace insurance plans.