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CNN Live At Daybreak
Many Companies Cutting Health Care Benefits
Aired July 17, 2003 - 05:17 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Faced with soaring health care costs, many companies have begun cutting benefits. In many cases, the cuts are minor.
But as CNN's Jen Rogers reports, some people simply can't afford the change.
(BEGIN VIDEOTAPE)
JEN ROGERS, CNN CORRESPONDENT (voice-over): John and Sally Ferrari are fighting a war on two fronts, one against Sally's Alzheimer's, another against her former employer, Polaroid.
JOHN FERRARI, SUING FOR BENEFITS: In the mailbox was a letter from Polaroid. It was like our feet were cut off. Polaroid terminated her in an unsigned letter, stating that they could no longer afford to pay the medical benefits that we had considered were contractual.
ROGERS: Polaroid would not comment on this case, but it is a growing trend in corporate America, workers on long-term disability suddenly out of a job and out on their own in terms of insurance. A recent survey found over a quarter of companies terminate employees as soon as long-term disability starts. Just under another quarter let go of an employee after a set amount of time, usually six to 12 months.
(on camera): Now, the companies argue they have no other choice. With health care costs soaring and the number of Americans on disability up more than 60 percent in the last decade, they say they have to cut costs somewhere and contend those on long-term disability should be able to find new insurance.
JAMES CURCIO, BUSINESS GROUP ON HEALTH: There is coverage. Up until 24 months after a disability occurs, someone is eligible for Medicare. Now, what employers do successfully that I think others don't is they effectively bridge that gap.
FERRARI: Sally, lunch is ready.
ROGERS: But for some, Medicare's limited access and quality of care isn't adequate. The Ferraris are suing Sally's former employer. She still receives 70 percent of her old salary and now has benefits through John's job. The problem? He has to work to keep the coverage.
FERRARI: I wanted to be able to take care of her while she could still remember my name. I don't know if that's going to happen.
ROGERS: Jen Rogers, CNN Financial News, New York.
(END VIDEOTAPE)
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired July 17, 2003 - 05:17 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Faced with soaring health care costs, many companies have begun cutting benefits. In many cases, the cuts are minor.
But as CNN's Jen Rogers reports, some people simply can't afford the change.
(BEGIN VIDEOTAPE)
JEN ROGERS, CNN CORRESPONDENT (voice-over): John and Sally Ferrari are fighting a war on two fronts, one against Sally's Alzheimer's, another against her former employer, Polaroid.
JOHN FERRARI, SUING FOR BENEFITS: In the mailbox was a letter from Polaroid. It was like our feet were cut off. Polaroid terminated her in an unsigned letter, stating that they could no longer afford to pay the medical benefits that we had considered were contractual.
ROGERS: Polaroid would not comment on this case, but it is a growing trend in corporate America, workers on long-term disability suddenly out of a job and out on their own in terms of insurance. A recent survey found over a quarter of companies terminate employees as soon as long-term disability starts. Just under another quarter let go of an employee after a set amount of time, usually six to 12 months.
(on camera): Now, the companies argue they have no other choice. With health care costs soaring and the number of Americans on disability up more than 60 percent in the last decade, they say they have to cut costs somewhere and contend those on long-term disability should be able to find new insurance.
JAMES CURCIO, BUSINESS GROUP ON HEALTH: There is coverage. Up until 24 months after a disability occurs, someone is eligible for Medicare. Now, what employers do successfully that I think others don't is they effectively bridge that gap.
FERRARI: Sally, lunch is ready.
ROGERS: But for some, Medicare's limited access and quality of care isn't adequate. The Ferraris are suing Sally's former employer. She still receives 70 percent of her old salary and now has benefits through John's job. The problem? He has to work to keep the coverage.
FERRARI: I wanted to be able to take care of her while she could still remember my name. I don't know if that's going to happen.
ROGERS: Jen Rogers, CNN Financial News, New York.
(END VIDEOTAPE)
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
