Progress Pond

GM’s Health Care Hostage-Taking

Ambulances parked in front of the U.S. Capitol Building in Washington DC.

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)!

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