According to the Detroit News, General Motors is currently attempting to shift health care costs to the tune of 1 billion dollars onto retirees.
According to papers that were filed om a hearing to approve this measure,
“Without significant reductions in this growing (health care) liability, GM’s future — and its continued ability to fund even reduced health care benefits — is at serious risk…”
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The Detroit News also states
GM lost more than $8 billion in 2005, and the company says health care expenses are hindering its competitiveness and ability to fund product development and other operations.
GM is threatenting job loss due to health care expenses, a ploy has worked repeatedly since the 1980’s. It was used successfully when Chrysler held both employees and retirees hostage in order to receive federal loan guarantees and contract concessions.
Now retirees are speaking out. GM retiree Robert Nadiger of Hudson, Fla., wrote
“When GM made all that money, they should have put some of the money in a health care fund like the pension fund.”
GM also received a 1 billion dollar government subsidy to encourage the conituation of the paying of retiree health care, as opposed to GM retirees having to particpate in Medicare D(isaster).
Jerry Dubrowski, speaking for General Motors justified the acceptance of the subsidy by claiming,
“This is an important first step in reforming the whole health care system.”
So, it appears that the federal government is subsidizing corporations to increase health care costs for employees and retirees. In turn, insurance carriers are subsidized for Medicare D(isaster). With all of the government subsidies floating around, a sinlge-payer system, as it would increase comptetitiveness, which would stimulate the economy, and be more effective in reducing health care costs. The cost of processing the paperwork alone is approximately $286 BILLION DOLLARS.
Bet that figure has more than doubled since the implementation of Medicare D(isaster)!
xposted at dkos and MLW
Am to the point where I don’t believe a word of what any of the Big 3 say anymore. Saw my parents go thru all the stress waiting for the federal loan guarantees in the ’80’s–dad had retired on disability. Retirees were the first ones threatened w/loss of pension and health care, now its the same thing. If the automakers would build some fuel-eficient cars/hybrids that were halfway decent, as opposed to redoing the old muscle cars, sales would improve big time.
This is a great and much needed series. Thank you for all the hard work you do and for always bringing it to the forefront.
Thanks Janet. The same thing has been going on for so long, I really wonder what has to happen so people will wake up. Healthcare is not a commodity, even though those in power feel it is. I really believe (and I know you do too) that everyone in this country is entitled to health care. In other words, health care is a right, not a privelege.
And thanks for your diary.
The hubris of the auto industry, particularly after the “shot across the bow” in our earlier oil crisis in the 70’s, has been tremendous.
But if you read the stuff coming out of this year’s auto show, you’d still be reading about muscle cars, or cars that look like muscle cars. Hummer-wannabees. It is insanity.
And we’ve been chided for being disloyal for driving a micro-sized foreign-made car that gets wonderful mileage, has been utterly reliable, and is excellent as a commuter vehicle. I’d be delighted if I could buy such a car that is a U.S. brand.
Surely those dollars spent on oil could be doing directed in a more productive way, like helping fund a realistic and universal health care system for our citizens!
This whole story re: GM and health care costs really irritated me, so I fired off a quick lte!