ExtendHealth sending new benefits information to GM retirees

Patricia Anstett

Jul. 15, 2008 (McClatchy-Tribune Regional News delivered by Newstex) -- Some 97,400 salaried General Motors (NYSE:GM) retirees this week will begin to receive the first of numerous health benefit packages from the company explaining their new coverage options.

GM has hired ExtendHealth, a San Francisco benefits management company, to help employers find new health care providers, said spokeswoman Michelle Bunker.

ExtendHealth last year helped 40,000 retired, salaried Ford Motor Co. (NYSE:F PRS) (NYSE:F PRA) (NYSE:F) workers make a similar transition.

ExtendHealth will send packages of information to the affected retirees in September and will set up a call-in telephone service prior to Oct.15, the first day of enrollment for Medicare. That package will be followed up by other mailings and seminars to guide retirees through the varied options they have through Medicare. "We want to make this transition as easy as possible for everyone," Bunker said.

GM announced this morning it was dropping health benefits for its retired, salaried workers, effective Jan. 1. Each will receive a $300 monthly increase in their pension checks, to help cover health costs.

Bunker said the decision affects 97,400 salaried GM retires and an unknown number of their spouses. They have had generous benefits in the past that included coverage for medical, dental, vision, prescription drug and some rehabilitation services, she said.

GM paid $3.3 billion last year for health care for its 442,400 retirees retirees, a figure that includes hourly workers not affected by the benefit changes GM announced Tuesday, Bunker said.

Contact PATRICIA ANSTETT at 313-222-5021 or panstett@freepress.com.

Newstex ID: KRTB-0048-26685900