Nov 21, 2005
GM complained loudly about its rising retiree health care costs in order to convince its workers to accept health care concessions.
What neither GM, nor any of the “analysts,” ever mentioned was that GM and every other company that provides retiree drug coverage is about to get a big subsidy from the new Medicare drug plan. Corporations will get a subsidy of 28% of what they claim they pay each year. Based on their current claims – as though we should believe them – the average subsidy will be about $670 for each worker covered by company plans. And it’s tax free!
The bosses are experts at selectively presenting figures when it comes to crying broke. Remember this, when the next corporation comes complaining about its “out of control” health care costs.