Retiree VEBA Benefits Under Scrutiny

According to this article at NJ.com–“Retirees’ benefits under scrutiny: Politicians help ex-Steel workers address state’s problems with plan“–the Pennsylvania State Insurance Department is claiming a health plan for retirees under age 65 is not in compliance with state insurance law and puts consumers at risk. “The Retired Employees’ Benefits Coalition Inc., a Bethlehem-based organization which represents salaried Steel retirees, obtained the health benefits plan through the National Employees Benefit Cos. Inc. of Warwick, R.I., after Bethlehem Steel was taken over by International Steel Group of Cleveland earlier this year,” the article states. The benefits are provided through a VEBA which NEBCO is claiming is subject to ERISA, and therefore exempt from regulation by state insurance laws.