Under the proposed plan, beginning Jan. 1 retirees would have received a prefunded health reimbursement account to purchase individual health insurance through Willis Towers Watson OneExchange, a private network. In doing so, BCBSM hoped to save $300 million in administrative costs over the course of three years.
Approximately 3,200 BCBSM employees who retired after Jan. 1, 1993, and 4,138 anticipated retirees would have been affected by the change.
However, president of Detroit-based United Automobile, Aerospace and Agricultural Implement Workers of America International Union called out the insurer in an email to Crain’s, threatening to re-evaluate its “longstanding relationship” with BCBSM should it implement the a new plan.
Upon talking with UAW, the insurer agreed to postpone terminating its current retiree health plan and work with the union to find another way to curb its medical costs, according to the report. A new termination date was not specified.
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