State Farm retirees losing some medical coverage
February 16, 2013
Amidst talks of relocation, State Farm is trying to cut costs through moving Medicare-eligble retirees. (photo by B Corbin/WJBC)
By The Associated Press
BLOOMINGTON - State Farm Insurance Co. is again trying to move thousands of Medicare-eligible retirees off the company's group medical plan as a cost-cutting measure.
A first attempt in 2011 ran into technical problems, and the company said those issues have been resolved.
About 15,000 retirees who were allowed to temporarily remain on the company's plan will now have to find alternative coverage by June 1.
The company said assistance in finding new coverage is available from Aon Hewitt Navigators. State Farm will also pay $200 per person per month toward the cost of supplemental coverage.
State Farm spokesman Jeff McCollum said the company regretted that its first attempt to make the coverage switch caused ``inconvenience and confusion'' for
some of its retirees.