As many private and public organizations are ditching health insurance programs that help their retirees bridge the gap between employment and Medicare, the city of Chattanooga is window-shopping for a better plan to cover more than 1,000 retirees older than 65.
For much of the private sector, offering medical benefits to retirees even up to age 65 is becoming a thing of the past.
In 2013, about 28 percent of companies with 200 or more workers offered retiree health benefits, according to a 2014 study by the Kaiser Family Foundation. That number was down from 66 percent in 1988, according to the study.
And some public institutions are backing away from retiree medical benefits too.
In November, Erlanger Health System — the county’s fourth-largest employer — cut off all its retirement health care programs for about 160 retirees under the age of 65. The move is expected to save the hospital about $1.2 million a year.