BLOMINGTON, Ill (AP) — State Farm Insurance Cos. will remove many of its 28,700 retirees from its medical plan next year in a cost-cutting move.
The Bloomington-based company says it will instead help them find supplemental Medicare coverage and provide them with $200 a month to help.
State Farm also will make changes in the availability of retirement health care for current and future employees. People hired after this year, for instance, will have to pay for all of their own retirement medical insurance.
State Farm spokesman Phil Supple told The Pantagraph newspaper in Bloomington that growing medical claims have driven up the company’s health care costs for several years. He didn’t say how much the company expects to save.
Many companies have announced similar changes in recent years.
Copyright 2011 The Associated Press