Bloomington-based State Farm Insurance Cos. will stop providing supplemental medical coverage for its Medicare-eligible retirees next year in a cost-cutting move.
The company says it will instead help them find supplemental Medicare coverage and provide them with $200 a month to help. About 18,000 of the company’s 27,800 retirees are Medicare-eligible.
State Farm also will make changes in the availability of retirement health care for current and future employees. People hired after this year, for instance, will have to pay for all of their own retirement medical insurance.
State Farm spokesman Phil Supple told The Pantagraph newspaper in Bloomington that growing medical claims have driven up the company’s health care costs.
Many companies have announced similar changes in recent years.