Employer-provided healthcare has been an almost universal employee benefit since World War II. But with many companies saddled with huge post-retirement healthcare obligations and skyrocketing medical costs, employers are pushing those costs down to employees as fast as they can. While the troubles of corporate defined pension plans get the most publicity, the changes in employer healthcare may have more immediate and dramatic impact on both employer and employee. Consider: 

• Employer post-retirement healthcare obligations dwarf those for pensions.
• Companies must put pensions and “other post-employment benefits” (largely healthcare costs) on the balance sheet by the end of 2006.
• The cutbacks in healthcare coverage by employers are forcing their employees – both active and retired -- to seek alternatives, most of which are more costly to employees.
• Consumer-driven healthcare, including recently introduced Health Savings Accounts, appears to be the wave of the future, but it remains to be seen how widespread acceptance will be.

For more information and a hard copy, please contact David Zigas, Director of Investment Communications, 617 248-6202 .

The preceding information is based upon the analysis of historical performance of various asset classes and assumptions with respect to future economic conditions. Past performance is not an indication of future results. This information is not intended to provide specific advice, recommendations or projected returns of any particular MAM  product.