DEARBORN, Mich.—Ford Motor Co. said it notified salaried employees Wednesday that they will have to shoulder more of the cost of their health care coverage.
Current salaried workers will see their monthly premiums rise by 30% on average, depending on their health plan choice, said a spokesman for the Dearborn, Mich.-based automaker. Their deductibles, meanwhile, will increase by up to 33%, also depending on health plan choice.
The United Auto Workers union, meanwhile, provided details of a tentative retiree health coverage agreement recently reached with Ford. The agreement would require certain retirees to pay $10 a month for individual coverage, while they would pay $21 per month for family coverage. Currently, the retirees pay nothing for their coverage.
The agreement excludes some retirees, such as those with Ford pension incomes of $8,000 or less.
Retirees also will face deductibles and coinsurance payments with annual maximum potential out-of-pocket costs reaching $250 for an individual and $500 for a family.
If ratified by UAW members and approved by a federal district court, the cost-sharing changes for retirees would take effect in 2007.
The UAW said coverage for active union members would continue with no cost changes, other than increases in prescription drug copayments.
For reprints of this story, please contact Lauren Melesio at 212-210-0707 or email lmelesio@crain.com
