The Obamacare massacre continues: 3M to drop retiree health plans

The Wall Street Journal:

3M Co. confirmed it would eventually stop offering its health-insurance plan to retirees, citing the federal health overhaul as a factor.

The changes won’t start to phase in until 2013. But they show how companies are beginning to respond to the new law, which should make it easier for people in their 50s and early-60s to find affordable policies on their own. While thousands of employers are tapping new funds from the law to keep retiree plans, 3M illustrates that others may not opt to retain such plans over the next few years.

3M has some 23,000 retirees — no word on how many will be affected by this yet. Investor’s Business Daily is calling this the “Obamacare massacre.” Since these stories like this keep emerging, that name just might stick:

That comes on the heels of a report Thursday that McDonald’s was considering dropping its “mini-med” plan for its employees because those plans may run afoul of the forthcoming medical-loss ratio regulations.

Also on Thursday, the Principal Financial Group (PFG) announced it would stop selling health insurance, which means 840,000 employees who receive Principal coverage through their employers will have to look elsewhere. Just the day before, President Obama said, “So there’s nothing in the bill that says you have to change the health insurance that you’ve got right now.” And he’s right: the bill doesn’t say it; it just causes it.

Indeed, Harvard Pilgrim Health Care was giving the lie to Obama’s statement as he was making it. Harvard Pilgrim announced that it would end its Medicare Advantage plans at the end of the year, leaving its 22,000 Advantage customers scrambling for coverage.

A week before that, a number of health plans including Anthem (WLP), Aetna (AET), Cigna (CI), Humana (HUM), CoventryOne (CVH) and some Blue Cross Blue Shield companies decided that they would stop selling coverage in the child-only market.

Beltway Confidentialhealth careObamacareUS

If you find our journalism valuable and relevant, please consider joining our Examiner membership program.
Find out more at www.sfexaminer.com/join/

Just Posted

Organizer Jas Florentino, left, explains the figures which represent 350 kidnapped Africans first sold as slaves in the United States in 1619 in sculptor Dana King’s “Monumental Reckoning.” The installation is in the space of the former Francis Scott Key monument in Golden Gate Park. (Kevin N. Hume/The Examiner)
What a reparations program would look like in The City

‘If there’s any place we can do it, it’s San Francisco’

Officer Joel Babbs at a protest outside the Hall of Justice in 2017 (Bay City News file photo)
The strange and troubling story of Joel Babbs: What it tells us about the SFPD

The bizarre and troubling career of a whistle-blowing San Francisco police officer… Continue reading

Gov. Gavin Newsom speaks at a COVID-19 update at the City College of San Francisco mass vaccination site in April. (Kevin N. Hume/The Examiner)
Gavin Newsom under COVID: The governor dishes on his pandemic life

By Emily Hoeven CalMatters It was strange, after 15 months of watching… Continue reading

People fish at a dock at Islais Creek Park on Thursday, June 10, 2021. (Kevin N. Hume/The Examiner)
What Islais Creek tells us about rising sea levels in San Francisco

Islais Creek is an unassuming waterway along San Francisco’s eastern industrial shoreline,… Continue reading

Deputy public defender Chris Garcia outside the Hall of Justice on Wednesday, June 16, 2021. (Kevin N. Hume/The Examiner)
As pandemic wanes, SF public defender hopes clients will get ‘their day in court’

Like other attorneys in San Francisco, Deputy Public Defender Chris Garcia has… Continue reading

Most Read