Feds offer $5b to shore up early retiree coverage

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http://news.yahoo.com/s/ap/20100504/ap_on_bi_ge/us_health_overhaul_retiree_health

Trying to entice cost-weary employers to keep providing medical coverage to early retirees, the Obama administration is making $5 billion available until the safety net of the new health care law is in place.

Older baby boomers working for large companies — and looking to downshift to less-demanding employment_ could be the immediate beneficiaries.

Effective next month, federal subsidies will allow employers to recoup a big chunk of the cost of medical claims for retirees ages 55 to 64 not yet eligible for Medicare, according to a White House official who spoke on condition of anonymity ahead of the official announcement expected Tuesday.

However, in the long run, experts predict that President Barack Obama's health overhaul will accelerate the decline of employer-sponsored retiree coverage, by making it easier for people to find and keep affordable coverage on their own.

Early Retirees Get $5B Boost from White House
http://www.cbsnews.com/stories/2010/05/04/health/main6458745.shtml