The Spark

“The emancipation of the working class will only be achieved by the working class itself.” — Karl Marx

Retirees, Beware!

Aug 19, 2013

UAW retirees received a mailing from the VEBA Trust that advertises “a new plan option” that can “save you money.”

The letter is being sent out to convince UAW retirees to switch to a Medicare Advantage PPO, that will replace Medicare A & B and the VEBA complimentary coverage.

It says 2014 monthly contributions will be waived, and promises more for less (although it does say we will continue to pay the Medicare B premiums).

Watch out for the hook! Depending on your usage, the savings quoted even for the first year could be deceiving. And what they don’t tell you is how much you’ll pay in succeeding years, which will be much more than what you pay through the VEBA. Medicare Advantage plans have been steadily increasing premiums over a five-year period – ever since Congress began cutting funding.