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Updated: 1:05 a.m. Friday, Dec. 31, 2010 | Posted: 10:14 p.m. Thursday, Dec. 30, 2010
By Ben Sutherly
Staff Writer
DAYTON — NCR Corp. is changing its supplemental plan to Medicare for retirees older than age 65, effective Feb. 1, the company confirmed Thursday.
NCR mailed letters Dec. 14 notifying retirees of the change, spokeswoman Anne Marie Agnelli said.
NCR, which moved its headquarters from Dayton to Georgia in 2009 and 2010, declined to disclose how many retirees are affected by the change or how much the changes will save the company. But Scott McGohan, CEO of McGohan Brabender, a Kettering-based employee benefits brokerage agency, said NCR told him the change would affect about 10,000 retirees nationally and about 3,500 locally.
Whether a retiree pays more or less for health care will hinge primarily on their overall health care utilization, particularly what kind of medications they’re prescribed, McGohan said.
“The NCR Supplemental Plan to Medicare provided limited medical coverage on top of what was already covered by Medicare regarding hospital stays and outpatient services,” NCR said in a prepared statement. “This change will give post-65 year old retirees more choices on how they select health coverage.”
McGohan said the switch is a response to rapidly increasing health care costs, which are forcing companies to make changes to retiree benefits.
The current NCR plan is limited to part A, as compared to individual Medicare plans that give participants a variety of carrier and coverage options, the company said.
By shifting retirees to individual Medicare plans, NCR will provide subsidies through retiree reimbursement accounts that will give retirees more flexibility, the company said. Participants can use those funds as needed for annual premiums, prescriptions and other costs.
NCR union retirees may choose to stay on the current NCR supplemental plan to Medicare, or may switch to individual insurance coverage.
NCR said it will work with UnitedHealthcare to arrange on-site information sessions and one-on-one sessions with UnitedHealthcare specialists.
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