By Bill Zeeble, KERA News
http://stream.publicbroadcasting.net/production/mp3/kera/local-kera-861877.mp3
Dallas, TX –
American Airlines says beginning next year, it will stop offering health insurance to retirees over 65 who pre-paid for the plan. The new rule will affect more than 3500 non-union retirees and spouses. KERA's Bill Zeeble has more.
American says it's trying to stay competitive. So it told retirees over 65 they'll get a refund if they pre-paid for their insurance in the Retiree Standard Medical Plan. But they will no longer get the coverage they had expected when they paid up front before retiring.
Instead, they can buy coverage on top of Medicare for a monthly charge. The company hopes to negotiate the same policy with its unions. But Scott Shankland with the Allied Pilots Association, says the APA will protect its retirement benefits. He's upset for those who got the letter.
Shankland: It's unfortunate AMR would choose to target employees who've dedicated long careers to this airline and are now counting on the retirement benefits that they expected to be there. 219 American says of the top U.S carriers, only United and American still offer insurance to retirees over 65.