OMAHA, Neb. (KMTV) — Beginning in January, Boys Town will no longer offer health benefits for its retirees. They cited the COVID-19 impact as the reason.
The move will affect about 130 people and their dependents.
"Pre and Post age 65 retirees and their dependents currently enrolled in the retiree medical or dental benefits will no longer be eligible for healthcare coverage under the Boys Town group retiree insurance policies," a letter to retirees announcing the change said.
3 News Now spoke to some retirees who wanted to remain anonymous, but said this was a promise broken by Boys Town. They worry their costs will go through the roof.
A Boys Town spokesperson said it will be meeting one-on-one with those affected to help find a new insurance plan for them. They said those they've already helped are seeing an average savings of four thousand dollars per year.
The health insurance was provided by Blue Cross Blue Shield.
"Even without COVID, many companies would be either dropping coverage, increasing deductible payments," said Creighton economics professor Ernie Goss. "It's just that healthcare has become much more expensive... so some employers are using COVID-19 as an excuse to reduce their payments toward healthcare benefits. That said though, COVID-19 has put financial pressure on companies to look for savings."