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14 Don’t Make Me Say I Told You So

The savings to the companies can be substantial. According
to Hewitt Associates, retirees account for about a third of large

employers’ costs for medical coverage. 1

For younger employees, most will find company-subsidized
healthcare a thing of the past. By the time younger workers
reach retirement, many will find that healthcare subsidized by

their employer is no longer available.

Just over a

Help from the Courts decade ago,

For the most part, judges and courts have not stood in the way
when companies seek to cut health-care benefits previously

promised to employees and retirees. In March 2008, the United

States Supreme Court gave approval for employers to trim
health-care benefits when workers turn 65 and are eligible for
Medicare. This ruling will affect millions of American retirees.

The AARP had battled on behalf of retirees to preserve the

benefits, but the Supreme Court ruled against its position. 2

The logic behind this ruling, which has become a common
delete
battle cry for companies seeking to cut retiree healthcare benefits,
is that these cuts will allow them to maintain health coverage
for retirees. If these cuts were not allowed, their argument goes,

they might be forced to drop all benefits for former employees.

Chapter 1: The New Retirement