GE slashes workers' health benefits

[Hannah Bell]

THIS YEAR, General Electric (GE) dropped a bombshell on its non-union employees--their responsibility for health care expenses is going to go up dramatically starting January 1, 2010.

Currently, salaried GE employees and their covered family members, including same-sex partners, have a traditional co-pay/deductible/co-insurance health care plan. However, next year the co-pays go away, and the plans pay nothing until the deductible is reached. After that, it's 20 percent until the out-of-pocket maximum is satisfied. That maximum also is being raised for most workers.

Some of the worst affected by this change are those expecting to have a child next year. A pregnancy under the current plan is either 20 percent (up to the maximum) or a $15 co-pay for every office visit with the "preferred" option. In 2010, a pregnancy will cost at least $4,225, and up to $7325, for an employee making $50,000 to $74,999.

Combine that with annual payroll contributions, and an employee paying for a pregnancy can expect to spend 10-15 percent of their salary for health care...

2006 marked the first year that GE's global employees out-numbered U.S. employees, so these are just the latest efforts for the multi-billion dollar conglomerate to trim costs to satiate its investors. GE's anti-worker attitude is turning GE from one of the best places for people to find a career into a mediocre place to work.

GE's workers are getting a taste of what "exempt employee" really means--no union, no leverage.


http://socialistworker.org/2009/12/17/ge-slashes-workers-health-benefits

[T Wolf]

1. Somewhere out there is a tipping point at which "enough" people will be screwed enough to

actually try and do something.

Despite more and more of these kind of examples of things to come, we aren't near there yet.

The difference between what a child will cost to deliver now and what we had with ours is stunning. Maybe this will hold down the population growth a bit.

[fortyfeetunder]

2. Race to the bottom with GE in the lead

Watch to see other GE-emulating companies to take similar measures to their employees.

[AllentownJake]

3. The HCR bill with its desire to maintain the employment/Health Insurance model

Only one word. Idiocy.

The system was created in a period where there were price controls on labor and a workers market. In 2009 it is an employers market and looks to be one for at least 5-10 years with even the most rosy economic conditions.

Translation, employers will be giving employees bare minimum for years to come.

[area51]

4. +1 (n/t)