Thinkstock
Industryweek 32511 Health Care 2
Industryweek 32511 Health Care 2
Industryweek 32511 Health Care 2
Industryweek 32511 Health Care 2
Industryweek 32511 Health Care 2

Automaker Retirees Racked Up a $2 Billion Pharmacy Bill in 2018

Feb. 15, 2019
The expenditures covered 656,000 retired union members and their dependents.

A retiree health-care trust set up by Detroit automakers and the United Auto Workers union described quite the medical bill on Capitol Hill this week: $4.2 billion.

The expenditures, outlined by Alan Reuther, legislative consultant for the UAW Retiree Medical Benefits Trust, covered 656,000 retired union members and their dependents. Almost half of that sum -- $2 billion -- went to prescription drugs, Reuther told the House Ways and Means Committee, which held a hearing Tuesday on rising costs.

About 80% of the trust’s members are covered by Medicare, and the trust provides supplemental coverage for prescription drugs, plus other health costs.

The biggest drug outlay for the trust in recent years has been insulin. About 50,000 trust members use the drug, and spending on it surged 51% from 2013 to 2017. Last year, the trust’s insulin costs were $235.5 million, Reuther said. That’s about $4,700 per patient.

General Motors, Ford, Chrysler and the UAW agreed to set up the trust in 2007 as part of contract-bargaining between the companies and union that takes place every four years. At the time of its 2010 launch, it was the biggest non-governmental purchaser of retiree health care in the U.S.

By Craig Trudell

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

How Manufacturers Can Optimize Operations with Weather Intelligence

Nov. 2, 2023
The bad news? Severe weather has emerged as one of the biggest threats to continuity and safety in manufacturing. The good news? The intelligence solutions that build weather ...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!