On November 18th, 2018, General Motors announced they would be cutting jobs and closing factories in an effort to “restructure” the company. This announcement sent shockwaves through the lives of workers and their families, as it would mean significant cuts to pay and benefits. One of the most significant impacts of these cuts was the elimination of health insurance for workers and their families. GM had previously been one of the few companies to offer health insurance to its employees, but now that benefit was gone. In this blog post, we will explore the implications of GM’s decision to cancel health insurance for its employees. We will also discuss what this means for the future of health care in America.
General Motors announces changes to health insurance benefits
General Motors has announced changes to its health insurance benefits that will take effect in 2020. The company will no longer provide health insurance to hourly employees who work less than 30 hours per week. In addition, GM will raise the minimum amount employees must work to be eligible for health insurance from 20 hours per week to 30 hours per week. Finally, GM will discontinue its dental and vision coverage for all employees.
These changes come as a result of the recent tax reform bill passed by Congress and signed into law by President Trump. The bill eliminated the individual mandate, which required everyone to have health insurance or pay a penalty. This change is expected to cause millions of people to lose their health insurance coverage.
GM says that these changes are necessary in order to remain competitive and keep costs down. The company also says that it is committed to providing affordable and accessible health care for its employees.
How will this affect employees and retirees?
The recent announcement that GM would be cancelling health insurance for its employees and retirees has caused a great deal of confusion and concern. There are a number of factors that will affect how this change will impact employees and retirees.
For current employees, the change will mean that they will no longer have health insurance coverage through their employer. They will need to obtain coverage through another source, such as the marketplace or a private insurer. This may result in higher premiums and out-of-pocket costs for some employees.
Retirees who are currently receiving health insurance coverage from GM will also be affected by the change. They will need to find new coverage, which could be more expensive than their current coverage. In addition, some retirees may not be eligible for Medicare until they reach age 65, which means they could be without any health insurance coverage for a period of time.
Employees and retirees who have questions about how this change will impact them should speak with their HR representative or benefits administrator. They can also consult with a healthcare reform expert to get more information about their options going forward.
What other companies are doing similar things?
It’s no secret that the U.S. health insurance system is in a state of flux. With the Affordable Care Act (ACA) being implemented, and the Supreme Court set to rule on its constitutionality this summer, many companies are re-evaluating their health insurance benefits packages.
One such company is General Motors (GM). In late 2013, GM announced that it would be cancelling the health insurance benefits for its salaried retirees. The move was widely criticized, but GM defended its decision by saying that it was necessary in order to stay competitive in a global marketplace.
Since then, other companies have followed suit and begun cutting back on their health benefits offerings. For example, IBM has ended its health benefits program for retirees aged 65 and older. And last year, Walmart stopped offering health insurance to new employees who work less than 30 hours per week.
These changes come as the ACA is beginning to take effect. The law requires all Americans to have health insurance or face a tax penalty. It also provides subsidies to help low- and middle-income people afford coverage. As more people are covered by the ACA, employers may see less need to provide health benefits themselves.
What does this mean for the future of health insurance?
The recent announcement by General Motors that they are cancelling health insurance for their employees has caused a great deal of concern among workers and their families. While the company has stated that they will continue to provide health care coverage through other means, many people are worried about what this means for the future of health insurance.
There are a number of factors that contribute to the rising cost of health insurance, and it’s not clear how GM’s move will impact these costs. However, some experts believe that this could be the start of a trend among large employers. If more companies follow suit, it could put pressure on the already-strained health insurance system.
This is a complex issue, and there are a lot of unknowns at this point. However, it’s important to stay informed and keep an eye on developments in this area.
Conclusion
It’s still unclear what exactly GM plans to do with its health insurance offerings, but it seems that the company is making some changes. While some employees may see their rates increase, others may be eligible for subsidies that could offset any increases. Ultimately, it’s up to each individual to decide whether or not GM’s health insurance plan is right for them.