3M has decided to send people who retire before age 65 to the government exchanges instead of dealing with it themselves. 3M is taking a giant step back from managing its retiree health insurance.
3M Co. on Friday informed retirees and workers it will stop offering a group health-insurance plan to retirees not old enough for Medicare by 2015, citing the federal health overhaul as a factor.
Americans become eligible for the Medicare insurance program at age 65. Starting in 2015, 3M retirees too young to qualify for Medicare will receive financial support through what the company called a “health reimbursement arrangement” instead of the group insurance plan. The company described that as an account retirees can use to purchase individual insurance through exchanges that the health law creates in 2014.