Sidestepping COBRA's bite
Article Abstract:
The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) is an attempt by the federal government to reduce the federal deficit by shifing the burden of retiree medical care from the government to the private sector. Income tax deductions for health insurance will be disallowed for companies that do not comply with COBRA. Companies are advised to see which is cheaper: complying with COBRA, or dropping company-paid insurance plans. In the former case, employers might pay retired workers' medical bills indefinitely. In the latter case, the employer could shift the burden to employees, employee organizations, or insurance companies. This would not necessarily reduce employee benefits, but it would change the carrier.
Publication Name: Personnel Journal
Subject: Human resources and labor relations
ISSN: 0031-5745
Year: 1987
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Retiree wellness plan cuts health costs
Article Abstract:
A study of a senior wellness program, the Senior Healthtrac Program. has determined that wellness programs for retirees can substantially reduce their use of medical services and reduce the costs of service provision. The study reveals that reduction in the health risk factors of the seniors in the program resulted in a savings of about $133 per person a year in medical costs; that the number of reported hospital day for the seniors in the program fell 27%; and that visits to the doctor dropped seven percent for the participants.
Publication Name: Personnel Journal
Subject: Human resources and labor relations
ISSN: 0031-5745
Year: 1990
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