National

American cancels retired non-union employees' health care

American Airlines has sent letters to its retirees, saying it will be ending its Retiree Standard Medical Plan option for non-union employees.

The health insurance plan will be canceled as of Dec. 31, 2009. Instead, retirees will be able to purchase a supplemental Medicare coverage plan. But under the new programs, retirees will have to pay monthly premiums.

According to the letter, retirees had already pre-paid contributions to their retiree medical plan while they were employed by American Airlines. Those who have an outstanding prefunded balance will receive a refund, plus or minus any gains or loss of investments as of Dec. 31, 2009. Spouses who have been previously covered by the retiree medical plan will also lose coverage.

Read the complete story at star-telegram.com

  Comments