If I prepaid for after retirement medical coverage can the company, Union or Insurance change the terms and deductible amounts after I have retired.

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If I prepaid for after retirement medical coverage can the company, Union or Insurance change the terms and deductible amounts after I have retired.

I worked for a company over 44 years. Each month a small amount was deducted from my pay for this insurance. This was in addition to the amount taken out for my share of the negotiated medical. It seems lately they have changed the copay amounts on the prescription drugs as well as for office visits. Not sure where else they changed. I would have thought that once I was retired the benefit levels would then be frozen. I don’t like being at the mercy of a company I know longer work at and a union that I no longer can vote at.

Asked on May 13, 2009 under Insurance Law, Illinois

Answers:

L.M., Member, California Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

It appears you haven't been asked to pay anything additional for your premium.  I would contact the insurance company and the retirement benefits office at your former employer and get clarification on the increases you indicated they have made.  Insurance companies are notorious for increasing premiums, increasing co-payments, and increasing deductible amounts.  This typically happens at "open enrollment" time at the end of the year.  They can legally do this. 


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