Boston, MA, 03/12/2014 – The owner of 30 daily U.S newspapers, McClatchy Company (NYSE:MLN) has decided to drop its Health care plan by the end of 2014. The health care plan was meant for the retirees, but under the Affordable care Act, which came into existence recently, the company has decided to end the health care plan.
After this sudden announcement, the retirees have only two options left with them. First, either they have to follow the health care legislation set up by the President of United States, Barack Obama and buy health insurance from exchanges or they would be forced to pay a tax penalty of $95 if they fail to do so.
New Plans coming into existence
The main reason behind ending of this plan is that it doesn’t meet the requirements of the latest health care legislation brought up on September 10, 2013. Although McClatchy would continue to offer its plan till the end of this year, but retirees cannot use it as the main health care plan. Many companies have thus started reforming their health plans based on the new legislation.
McClatchy has thus decided to join companies that are reforming their plans for retirees. Some of the companies that are signalling their employees to go for insurance exchanges are International Business Machines Corp (NYSE:IBM)., Time Warner Inc (NYSE:TWX)., General Electric Co (NYSE:GE). etc.
Since the newspaper industry coped with the print-advertising slump, the newspaper companies are enforced to make such changes. Advertisement rates for newspapers are generally cheaper, still the marketers are moving towards digital technology. Hence it became necessary for newspaper companies to drop health plans and look forward to a better profit.
Whatever changes are made in the plans, they’ll be out by the 1Q2014. The news isn’t good at all for the retirees, but they should still hope for the best.